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Icasa postpones MTR implementation

14th February 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The Independent Communications Authority of South Africa (Icasa) has postponed the implementation of the new mobile termination rate (MTR) glide path as MTN challenges the new regulations in the South Gauteng High Court.

The rates, which largely favoured smaller operators, such as Cell C and Telkom Mobile, through the aggressive asymmetry rates, would be implemented from May 1, as opposed to the initial date of March 1.

The final termination rates, which were gazetted last week, would see the MTRs halved to 20c this year, before declining to 15c in March 2015 and 10c by March 2016, while the asymmetry would be set at 44c, before declining to 42c in 2015, 40c in 2016 and 20c in 2017.

Mobile operator MTN this week served an urgent application, with 31 respondents, to have the gazetted termination rate implementation suspended as the group moves to review and have the new glide path set aside.

The complex, 399-page application afforded the parties “very little time” to respond, with affidavits required to be filed by February 18.

The urgent application was set to be heard by the court on February 25.

“Icasa has decided that it is in the public interest for the urgent application to be heard and decided on a less urgent basis,” the authority said, adding that it was important that the High Court was fully informed of all the relevant issues before making its decision.

It was critical that the affected parties had sufficient time to properly prepare their answering papers, particularly given the complexity of the matter, as the High Court’s decision would have “wide-ranging effects” on the parties and the public at large, Icasa pointed out.

Edited by Creamer Media Reporter

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