Parliament: National Assembly's Portfolio Committee on Communications has decided to hold public hearings on proposals relating to a significant reduction in interconnection rates for mobile operators. The hearings are scheduled to be held on 13 to 14 October 2009.
The Committee today received briefings from the Independent Communications Authority of South Africa (Icasa), Competition Commission and the Department of Communications on interconnection rates, which it considered to be excessive and exorbitant.
During the meeting the Committee agreed to call for public submissions on the following proposals:
* Mobile and telecoms operators drop the interconnection rates with effect from 1 November 2009 to 60 cents per minute during peak times.
* Interconnection rates can be further reduced by 15 cents annually on 1 November for each successive year until 2012.
* As a general rule the progressive reductions in interconnection rates between 2009 and 2012 should yield concomitant reductions in the actual consumer (retail) prices of telecommunications.
The Committee based its proposals on the belief that:
* Interconnection rates in South Africa set at R1,25 per minute during peak times are exorbitant and excessive, resulting in extremely high telecommunication prices.
* This is the consequence of apparent historical collusion between dominant mobile operators in the country which has placed profits and greed above people and the incapacity of ICASA to effectively regulate this matter.
* The high costs of mobile and fixed line telecommunications has impacted adversely on the South African economy and negatively on citizens, particularly the poor and marginalised.
* There is unanimity in the industry, government, other relevant stakeholders and the regulatory authority that the present situation is socially indefensible and economically unjustifiable.
The Committee further called on the Minister of Communications to finalise the performance management system of ICASA Councillors as embodied in the ICASA Act (No 4 of 1999) and the department should report on the matter to the Portfolio Committee by the 30 November 2009 and ICASA to act professionally, effectively and boldly to regulate interconnection rates in South Africa as a matter of urgency.
The Committee has also declared that it is willing to introduce in the next session of Parliament, a Committee Bill to amend the Electronic Communications Act (No 36 of 2005) so as to enable ICASA to act swiftly in this matter.
For enquiries or interviews with the chairperson, please contact:
Ms Yoliswa Landu
Tel: 021 403 8203
Cell: 073 738 0182
E-mail: ylandu@parliament.gov.za
Issued by: Parliament of South Africa
15 September 2009
