ICASA to review Impact of Price Cuts

5.    Call Termination Regulations

It is almost a year since ICASA published the Call Termination Regulations that set a pricing structure for charging wholesale voice call termination services among mobile and fixed line licensees over a three year period, starting from the 1st of March 2011 to the 1st of March 2013, ultimately with termination rates for mobile voice services reducing to R 0.40 per minute and between R 0.12 and R 0.19 per minute for fixed line services (and not as reported in the City Press article of 2020-01-29).

At the time of publishing the regulations, the Authority undertook to monitor the benefits that would accrue to the consumer at the retail level. This continuing monitoring exercise will enable the Authority to make a determination on the impact at retail level by 1 March 2020.

The regulations have only been in place for one year, having had a definite initial impact of reducing the cost of a telephone call from a fixed line to a mobile phone and reducing the cost of doing business for a number of smaller operators in the market.  This has spurred on-going investment and participation in the economy by entrepreneurs, stimulating new services, new networks and more economic opportunities in the ICT sector.

As the rates decrease in line with the specified glide-path the Authority expects overall reductions in the total cost of communication as operators seek new avenues to provide cost-efficient and quality services to end-users.

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