ICASA releases termination rates

ICASA releases termination rates

The Independent Communications Authority of South Africa (ICASA) has announced its call termination rates for both mobile and fixed rates available, valid until 2016.

HumanIPO reported yesterday on ICASA’s planned release of  its draft call termination rates for public comment.

Applicable as from March 2014, a mobile call termination rate of ZAR0.20 (US$0.02) will apply.

The rate will be cut by five cents per year, arriving at a cost of ZAR0.10 (US$0.01) in March 2016, making it ZAR0.30 (US$0.03) cheaper than its current price.

Fixed location termination rates will be charged at ZAR0.19 (US$0.02), decreasing to eventually arrive at a tariff of ZAR0.12 (US$0.01).

The changes were made based on ICASA findings that since 2010 South Africa’s call termination rates have been inefficiently priced with regards to affordability and competence.

“The authority finds that the market remains ineffective with extremely high levels of concentration, where the market for termination to a mobile location and the market,” ICASA said in a statement.

Cost-oriented pricing was imposed upon Vodacom and MTN in the mobile space and Telkom is targeted for fixed line termination.

Image courtesy of Shutterstock.

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