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Telkom, Cell C welcome rates ruling

Eugene morokolo Apr 01,2014 0 Comments

law 300x228 Telkom, Cell C welcome rates ruling

The South Gauteng High Court has ruled that the asymmetric call rate be implemented for the next six months effective April 1. The court ruling has already been welcome by both Telkom and Cell C with both saying it will stimulate competition.

”Telkom notes that the court has exercised its discretion in the interest of the public to allow the mobile termination rate of 20 cents and the asymmetric rate of 44 cents to be implemented for the next six months, effective 1 April 2014”.Telkom said in a statement.

The company says within the six month period the Independent Communications Authority of South Africa (ICASA) must complete a costing exercise and follow due process.  ”Telkom will support ICASA in completing this process effectively and efficiently”. The company said.

The Company believes that the ruling is in the best interest of the industry and will go far in reducing the cost to communicate for consumers and stimulating competition in the industry.

Cell C says it believes the ruling made by the court is a step in the right direction and is positive for the consumer and the South African economy as a whole. “Unfortunately, Vodacom and MTN have managed to frustrate the long-term process envisaged by ICASA to increase competition in the market, which would have resulted in lower prices for consumers in the long run”. Says Jose Dos Santos, Cell C Acting CEO.

Dos Santos says the uncertainty over MTRs over the next three years will continue to make it difficult for smaller operators to confirm their business plans beyond October 2014.  “ It also negatively impacts on the smaller operators’ ability to bring down prices to ensure all South Africans have access to affordable communications,” Said Dos Santos.

Cell C says  it will continue to cooperate with ICASA so that it can fulfill its mandate to regulate effectively to increase sustainable competition in the telecommunications sector and thereby ultimately to reduce the cost to communicate in South Africa for the benefit of consumers and the economy at large.  “We trust that Vodacom and MTN will do the same,” he said.

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