The Portfolio Committee on Communications (PCC) welcomes the judgement on Mobile Termination Rates (MTRs), considering it to be a balanced decision by the courts that supports the consumer and protects public interest and government’s policy for reducing communication costs in South Africa.
From 1 April 2014, MTRs (interconnection rates) will decrease from 40 cents to 20 cents, whilst asymmetric rates will be 44 cents, an increase from 20 cents. This is good news for consumers and for stimulating competition. It is of utmost importance to government that people, especially those residing in remote rural areas, have affordable access to telecommunication services.
The Committee understands that the Judge found that the Independent Communications Authority of South Africa’s (ICASA’s) process was flawed, but also that MTN and Vodacom should have cooperated by furnishing the Authority with the required information. It trusts ICASA will take the Judge’s comments to heart when conducting the new rates review. It will also be critical that all operators contribute positively, fully and transparently in this new process.
The Committee urges all parties involved to respect the decision of the courts and to work collaboratively towards ensuring affordable telecommunication services for all citizens.
“We call upon the Department of Communications and the National Treasurer to ensure that ICASA is allocated the required resources to conduct this important task,” Committee Chairperson Mr Sikhumbuzo Kholwane says.
He further recommends that ICASA should ring-fence the activity of this project by establishing a Project Management Office (PMO).
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