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ICASA rejects MTR proposal

3 Feb 2010

South African regulator the Independent Communications Authority of South Africa (ICASA) has rejected proposed mobile termination rate (MTR) cuts and will instead impose its own regulations on the country’s cellcos, Bloomberg reports. As reported by CommsUpdate on 13 November 2009, Cell C, Vodacom and MTN had reached an agreement to reduce MTRs from an average of ZAR1.25 (USD0.16) per minute during peak times, to peak ZAR0.89 and off-peak ZAR0.77. Although lower than a previous proposal by a state committee that rates should be cut to ZAR0.60 per minute during peak times and then by a further ZAR0.15 annually until 2012, Communications Minister Siphiwe Nyanda appeared to back the cellcos’ agreement. However, ICASA said it aims to introduce its own proposals for MTRs in March 2010. Vodacom CEO Pieter Uys reacted to the news by saying that he would seek a meeting with ICASA to negotiate the proposed cuts.

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