Cellular Operators: New call termination rates set

NEW CALL termination rates favouring smaller cellular operators were announced by the Independent Communications Authority of SA on Monday. “The authority has maintained asymmetry for smaller operators and new entrants to facilitate competition in a market that has been determined to be uncompetitive,” committee chairwoman Nomvuyiso Batyi said. Termination rates are the rates operators pay one another for calls to other networks. Batyi said the asymmetrical rates for cellular operators already in the market were limited to the current regulatory period, which would expire in 2017. The new wholesale voice call termination rates were 20c from today to September 30, 2015, 16c for the following year and 13c for the final year. Smaller operators, such as Cell C and Telkom Mobile, could charge 31c now, falling to 24c next year then 19c in 2016/17. Batyi cautioned: “Retail rates do not in all instances come down by the drop in the termination rate.” – Sapa