Johannesburg – The Independent Communications Authority of South Africa (ICASA) calls on all stakeholders to actively participate in the consultation process on the draft Call Termination Rates. This is a key development in the Authority’s broader programme to reduce the cost to communicate. The draft Regulations seek to further reduce mobile termination rates – the price that mobile and fixed network operators charge each other for terminating calls between networks.

The draft Regulations were published on 16 August 2018. The deadline for submission of written comments is 7 September 2018. The Authority also intends to hold public hearings upon receipt of written comments to further engage on the input received on the key aspects and proposals of the draft Regulations. The effective date of the Regulations (once finalised) will be 1 October 2018.

The benefits of the regulation of wholesale call termination rates for consumers has been proven over the past 8 years. Since 2010 the termination rates have been reduced by approximately 90% and this has contributed to the significant decline in retail rates over the years.

It is against the above context (and in line with the requirements of the Electronic Communications Act No. 36, 2005) that the Authority’s recent review of the wholesale call termination market was undertaken. The review found that the wholesale call termination market still remains ineffectively competitive, is characterised by significant market players and requires imposition of procompetitive remedies in the form of price controls. To this end, the draft Regulations propose the following interventions:

1. a glide path period where a charge for terminating a call on mobile and fixed location would be 12c and 8c respectively, from October 2018 to September 2019; 10c and 5c for the period October 2019 to September 2020; and 9c and 3c from October 2020 onwards. The Authority used both top-down and bottom-up cost models to inform its determination of the ‘cost’ for call termination in this regard. The Authority looks forward to receiving representations from stakeholders in order to assess and determine what the reasonable level for termination rates for the duration of the glide path (and from October 2020 onward) should be.
2. asymmetry for small players and new entrants for the duration of the three year glide path. The asymmetry for mobile services is proposed to be at 5c from October 2018 to September 2020 and 4c from October 2020 onwards. Asymmetry for fixed services is proposed to be 1c from October 2018 to September 2020 and fall away completely from October 2020 onwards. Similarly, the Authority looks forward to receiving representations from all stakeholders on the justification for the granting of asymmetry, whether or not it should be granted for the duration of the glide path period (and or beyond) and the reasonable level for such asymmetry.

ICASA will undertake a review of the markets for wholesale voice call termination services to which these Regulations will apply, as well as the effectiveness of competition and the application of pro-competitive terms and conditions in these markets when the Authority deems it necessary but not earlier than three (3) years from the date of publication of the final Regulations (i.e. with effect from October 2021).

Ends

For all media enquiries please contact:

Paseka Maleka

011 566 3455

079 509 0702

pmaleka@icasa.org.za

Call Termination Public Hearings Schedule - 10 September 2018

Presenters are requested to submit an electronic version of presentation as well as make available 13 copies for panel members.

Any enquiries in relation to this notice must be submitted in writing (e-mail) to:
Mr Ruvengano Mandebvu
Project Leader
Tel: (011) 566 3495
RMandebvu@icasa.org.za