The Independent Communications Authority of South Africa (Icasa) has published the findings of its review of the Call Termination Regulations of 2014 and the pro-competitive conditions or measures imposed on relevant licensees.
In a statement, published on Wednesday, Icasa said that local licensees must charge reciprocal international termination rates for voice calls originating outside of South Africa.
“The international termination rates charged by local licensees may not be less than the domestic regulated termination rate or higher than the international termination rate offered by their counterpart – meaning that the difference between domestic termination rates and international termination rates must be fair and reasonable,” said Icasa Councillor Dr Charley Lewis.
The international termination rate, which has been a bone of contention for consumers and businesses for a long while, was among other matters consulted upon in the discussion document, which was published in November 2021 to obtain representations from all the relevant stakeholders.
The findings, which are a culmination of the consultative process the authority embarked upon after the discussion document was published, outline that the relevant markets are mobile and fixed termination markets, including termination of voice calls originating outside of South Africa.
Further, each individual licensee that offers wholesale voice call termination services in South Africa has 100% market share in respect of voice calls terminating on its network and has significant market power.
“Neither retail nor wholesale constraints are likely to be effective in preventing a wholesale voice call termination services provider (mobile or fixed) from setting termination rates above competitive levels in the absence of a regulatory intervention,” Icasa noted.
The authority has determined – to retain the pro-competitive licence terms and conditions to address market failures in the relevant markets – that licensees must charge cost-based pricing and must publish a reference interconnection offer.
Further, mobile termination rates will move to symmetry within a transitional period of twelve months, while new licensees will qualify for asymmetry for a limited period of three years after entry into the market.
Icasa will publish a notice of intention to initiate the next phase of the process, which includes the public consultation on cost modelling to determine the efficient cost of providing wholesale voice call termination services.