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IT & TELECOMS: Interconnection Rate Reductions

 





Recent Gauteng Business News

By now it is well known ICASA is entitled, in terms of the Electronic Communications Act (ECA), to require mobile operators who hold significant market power to reduce their interconnection rates. Further, ICASA is also entitled, to prescribe asymmetric interconnection in order to remedy market inequalities.

Virgin has come out with a statement saying that they fully support the process of cost base lining and benchmarking accompanied by asymmetry as being in the interests of competition and consumers. It is apparent from the gap between on-net and off-net rates reflected by the majority of tariffs available today, that inflated interconnection rates have resulted in higher retail rates.

The general feeling is that, despite any initial reluctance by the major operators to pass on interconnection rate reductions, this process will ultimately result in lower retail rates for consumers.

For some time now there have been a number of decent cellular tariffs for predominately off-peak users while high peak users have had to pay the inflated rates determined by the artificially high peak interconnect environment.


 
 
 
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