Cellphone giants MTN and Vodacom are taking Icasa to court on Tuesday over the communication regulator’s plans to slash mobile termination rates.<\/p>\n
The two companies approached the High Court in Johannesburg on an urgent basis to stop the Independent Communication Authority of SA (Icasa) from implementing a regulation on mobile termination rates.<\/p>\n
Termination rates are fees companies charge each other when calls are made from between them.<\/p>\n
The rates were expected to come into effect on April 1. MTN and Vodacom wanted the court to permanently scrap the regulation.<\/p>\n
The two said attempts by Icasa to set termination rates for 2014 at 20c for them and at 44c for the others was unlawful on a number of grounds.<\/p>\n
One of the grounds was that the figure of 20c was arrived at irrationally and that the 44c rate meant for smaller players was not based on cost.<\/p>\n
Icasa in its head if argument said the rates had driven up cost to consumers, making South Africa one of the most expensive places to use a cellphone.<\/p>\n
The national regulator said the 20c rate was justifiable according to an independent expert and that the cost was not what determined the 44c calculation.<\/p>\n
Icasa delay saves MTN R286 million<\/strong><\/a><\/p>\n MTR cuts would cost us R1 billion: MTN<\/strong><\/a><\/p>\n