MTN goes to court over MTRs

MTN goes to court over MTRs

South African mobile operator MTN has appealed to the High Court to issue an interim order postponing the new mobile termination rates (MTR) proposed by the Independent Communications Authority of South Africa (ICASA).

MTN wants the order to be issued so the termination rates can be reviewed.

HumanIPO reported last month ICASA had cut termination rates, effective from March 1, to ZAR0.20 from the current rate of ZAR0.40, with further cuts to follow in 2015 and 2016, but mobile operators commanding more than 20 per cent of the market share would have to pay more, a decision that affects MTN and Vodacom.

In a court document, MTN described the new MTRs are being “unlawful”, saying there were “defects in the process” as well as a “lack of procedural fairness”.

The operator said it would lose ZAR53 (US$5) for every second the new termination rates are implemented, amounting to ZAR4.6million (US$420,000) a day.

“For the duration of the interim period, the applicant [MTN] … shall continue to charge the wholesale call charge termination rates,” it said.

The company said if its motion was dismissed after the interim period, it would pay the difference in MTRs that were due to the other networks during that time.

ICASA has been given until the end of today to respond.

Image courtesy of Shuttershock

Posted in: FeaturedPolicy

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