MTN and Vodacom: New rates delayed by a month - Icasa

Published Feb 21, 2014

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The implementation of the new rates that telecoms operators pay to connect calls on each others’ networks would be delayed by a month, the industry regulator said yesterday. The Independent Communications Authority of SA (Icasa) had initially expected that introduction of the new mobile termination rates would be delayed by two months while it attended to a lawsuit from MTN. Papers were filed in the South Gauteng High Court earlier this month. MTN is querying the process that Icasa followed to determine the drop in the termination rates that majors Vodacom and MTN charge from 40c to 20c with effect from March 1. The companies expect to be further negatively affected as they will pay 44c to terminate calls on the networks of smaller rivals Cell C and Telkom Mobile. The amended rates will now be implemented from April 1. MTN shares fell 1.4 percent to R197.88, while Vodacom sank 2.26 percent to R116.92. – Asha Speckman

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