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Cellphone rates cut in doubt

Published: 3 February 2010

The Business Day reports that a proposed cut in cellphone interconnection rates by next month looks in doubt, after ICASA refused to endorse the operators proposal for a 29% reduction. Vodacom; MTN; and Cell C submitted a draft agreement to ICASA on 25 January, which would have seen the peak cost of connecting between networks fall from R1.25 to 89c a minute by 1 March.

Cellphone rates cut in doubt
The Business Day reports that a proposed cut in cellphone interconnection rates by next month looks in doubt, after the Independent Communications Authority of South Africa (ICASA) refused to endorse the operators proposal for a 29% reduction. Vodacom; MTN; and Cell C submitted a draft agreement to ICASA on 25 January, which would have seen the peak cost of connecting between networks fall from R1.25 a minute to 89c a minute by 1 March. High interconnection rates are widely considered a key factor behind South Africa's steep cellphone charges. The delay is likely to embarrass Communications Minister, Siphiwe Nyanda, who mediated the initial agreement in tense talks with the three cellphone companies in November. ICASA has said that it would not support the agreement, complaining that doing to would have bound it "to an undertaking not to review mobile termination rates until 1 March 2013."
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