South Africa’s communications regulator reportedly plans to slash call costs. The Independent Communications Authority of South Africa (ICASA) has proposed a significant reduction in call termination fees charged by mobile networks to connect calls.
South Africa’s Communications Regulator Plans to Slash Call Costs
The Independent Communications Authority of South Africa (ICASA) has announced a plan to reduce call termination fees charged by mobile networks. These fees, which are currently 9c per minute (or 13c for smaller operators), will decrease to 7c on July 1, 2024, and further to 4c on July 1, 2025.
This move aims to increase competition and efficiency in the telecom industry by providing consumers with more options and lowering call costs.
The Regulator Aims To Empower Operators to Adapt
Nompucuko Nontombana, ICASA Council chairperson, stated that by phasing out asymmetry and allowing a transition period for new entrants, the regulator aims to empower operators to adapt gradually while maximizing benefits for consumers.
The draft amendments to the call termination regulations are expected to lead to a more competitive and consumer-friendly telecommunications sector.
Previously, Telkom had challenged ICASA’s decision to eliminate asymmetric mobile termination rates (MTRs) for smaller mobile network operators in court. However, with the new regulations, smaller telcos like Telkom and Cell C will lose their advantage over larger telcos like Vodacom and MTN.
Additionally, new companies entering the voice call market will be eligible for three years of asymmetry following their launch.
Deadline for Operators to Provide Feedback to ICASA about the Regulations
Operators now have until May 10, 2024, to provide feedback to ICASA about the regulations. In 2022, the regulator also proposed amendments to ensure that data, SMS, and voice bundles for prepaid and postpaid users do not expire for at least six months, except for promotional packages.
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