Wholesale call termination

ADSL South Africa (Broadband South Africa), 17 May 2007

ICASA hearings relating to wholesale call termination kicked off in Sandton earlier this week.
 
‘The hearings are in response to a discussion document which elicited responses regarding the wholesale call termination market definition and to establish the presence or absence of significant market power (SMP) in this arena. Most major players have requested to make oral presentations’ (ICASA wholesale call termination hearings kick off, MyADSL).
 
In other words, players will have the opportunity to make contributions to the debate pertaining to wholesale call termination by giving their opinions at the hearings.
 
Which major players will make oral presentations at the hearings this week?

Almost all the big ones if not all will make oral presentations.
 
‘…Neotel, MTN, Vodacom, Telkom, Internet Solutions, Storm, Sentech, Cell C, Virgin Mobile and Mweb…’ (ICASA wholesale call termination hearings kick off, MyADSL).
 
Why the focus on wholesale termination rates?
 
High call termination prices.
 
‘The call termination prices are considered to be very high in South Africa, and many parties feel that lower wholesale termination rates will result in lower call costs to consumers’ (ICASA wholesale call termination hearings kick off, MyADSL).
 
In other words, lower wholesale termination rates will lead the way to lower call costs to consumers.
 
Since Neotel is first on the list of players, can you report on its presentation yet?
 
Yes.
 
Neotel mentioned the following in their presentation:

• Welcomed regulations to govern call termination market – ‘In their presentation Neotel welcomed ICASA's intentions to develop regulations governing this market, saying that the current environment with a fixed line monopoly player and two dominant players in the cellular arena can result in high rates and even collaboration between these parties’ (ICASA wholesale call termination hearings kick off, MyADSL).
   
  In other words, based on Neotel’s assumption one can assume that Telkom, MTN and Vodacom are not too happy about the possibility of regulations governing the call termination market. 

• Inverse world trend – ‘Neotel further pointed out that while call termination rates are declining in many international countries, the local trend is the inverse’ (ICASA wholesale call termination hearings kick off, MyADSL).
   
  In other words, instead of going down, call termination rates are going up in South Africa. 

• Good practices – Neotel ‘…asked ICASA to follow good practices identified in the European Union regarding regulation of wholesale call termination rates’ (ICASA wholesale call termination hearings kick off, MyADSL).
   
  In other words, ICASA don’t need to reinvent the wheel because good examples of how wholesale termination rates should be regulated can be found in the EU. 

ADSL South Africa (Broadband South Africa) welcomes the ICASA hearings pertaining to wholesale call termination. Hopefully it will help to pave the way to lower call costs.