Cell C chief executive officer (CEO) Alan Knott-Craig has threatened legal action against the Independent Communications Authority of South Africa (ICASA) unless it lowers mobile termination rates (MTRs) by the end of the year.
Business Day reports Knott-Craig also wants the regulator to probe Cell C’s rivals’ same-network call prices. Cell C spokesperson Candice Jones confirmed the comments to HumanIPO today.
“I will use everything in my power to get ICASA to do its job,” he said. “We have to protect our company and the industry. It is also in the interest of consumers.”
MTRs were cut last month by ICASA to 40 cents from 56 cents, but Cell C believes greater regulatory intervention is needed to help smaller companies challenge incumbents such as Vodacom and MTN.
Knott-Craig believes MTRs should be as low as 10 cents, and also calls for a 40 cents “asymmetric” MTR, with major operators paying more than the likes of Cell C.
“Asymmetry is critical for the sustainability of competition. If you don’t understand that, then you can’t regulate,” he said.
He promised Cell C would “use the law” if ICASA did not move quickly on regulating.
ICASA has already promised a study of how lower MTRs would affect the market, and says the review has begun and should be finished this financial year.
