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ICASA shows its teeth to mobile operators

ADSL South Africa (Broadband South Africa), 17 April 2010

The Independent Communications Authority of South Africa (ICASA) recently proposed aggressive mobile interconnection rate cuts. This certainly stunned the mobile operators in South Africa. 

Aggressive mobile interconnection rate cuts proposed...

The mobile interconnection rate cuts proposed by ICASA over a 3 year period can not only be described as ‘aggressive,’ but it must be seen by mobile operators as a sign that ICASA means business this time around.  

It was proposed that mobile interconnection rates, which are currently at 89c per minute, must be reduced to 65c from July this year and to 40c from July 2012. The first rate cut (89c to 65c) is equal to an almost 27% rate cut and the second (65c to 40c) to a 38% rate cut. This means that the overall rate cut (89c to 40c) will be in the vicinity of 55%! 

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