Accusations that mobile network operators are still charging smaller telcos R1.25 a minute to terminate calls on their network have surfaced. This despite voluntary interconnect rate cuts to 89c per minute announced in March.
So said Douglas Reed, Vox Telecom MD, at the Independent Communications Authority of SA's (ICASA) public hearings on the draft call termination regulations, held in Midrand this week.
Also at the hearings, ECN, a small local telecoms operator, accused two of SA's mobile network operators of still charging ECN R1.25 in termination costs. The telco failed to identify which two operators were responsible.
However, Reed did not hold back in naming the culprits. “Today, Vox is still interconnecting with MTN at R1.25; that is despite MTN supposedly dropping to 89c from 1 March,” he stated.
Later, Reed stated that Cell C was also charging the telco the R1.25 rate. However, after much deliberation with Vodacom, Vox now pays the agreed upon 89c to terminate calls on Vodacom's network.
While issues of symmetrical and asymmetrical costing remain undecided in the draft call termination act, MTN wasted no time in drawing on the Competition Act to enforce a reduction in the interconnect, explained Reed.
But Africa's biggest mobile operator lashed out at Vox's arguments: “MTN would like to point out that Vox Telecom (customers) are net receivers of interconnect revenue. Contrary to what Vox presented to ICASA, the impasse in negotiations has benefited them to the tune of 75c per minute since March 2010,” countered Robert Madzonga, chief corporate service officer at MTN SA.
