Johannesburg - The Independent Communications Authority of SA (Icasa) released its draft call termination regulations on Friday, substantially reducing cellphone rates.
This was meant to benefit the public.
For mobile, current rates were 40 cents a minute. This would drop to 20 cents a minute in March, to 15 cents in 2015 and to 10 cents in 2016.
“The Icasa has made its determination on the future of both mobile and fixed termination rates for the next three years, based on a review of industry conditions,” said Icasa councillor William Stucke.
“It will be published in the Government Gazette shortly for comment.”
Termination rates are the fees operators pay to connect calls between the networks. Icasa previously said the cost of termination on a mobile network should be as low as 15 cents.
“The authority finds that the market remains ineffective, with extremely high levels of concentration...,” said Stucke.
In 2010, Icasa determined that ineffective competition existed in the provision of call termination because of inefficient pricing.