The Independent Communications Authority of South Africa hereby announces that it has adopted the Long-Run Incremental Cost Plus (“LRIC+) as the cost standard for the bottom-up and top-down modelling to determine the cost of mobile and fixed wholesale voice call termination.
The basis for the decision of the cost standard adopted is as follows:
- LRIC+ would allow operators to recover a portion of joint and common costs incurred in the provision of wholesale voice call termination service through termination rates.
- To ensure continued investment in electronic communications networks in South Africa.
- To correct the imbalances created in 2010 wherein the 2010 Call termination Regulations applied different cost standards to different markets.
- To ensure a smooth transition from a Fully Allocated Cost standard used in 2010 to an eventual cost standard of pure LRIC.
A briefing document including the assumptions used for the top-down and bottom-up models is available on ICASA’s website (www.icasa.org.za).
For all media enquiries please contact:
Paseka Maleka
Cell: 079 509 0702
Tel: 011 566 3455
E-mail: pmaleka@icasa.org.za
