MTN South Africa on Monday moved to reiterate that it was in ongoing discussions with other operators regarding interconnection rates.
The cellphone operator on Friday confirmed that an agreement had been reached with Vodacom, and the group was pursuing bilateral negotiations with Cell C and other operators.
“The two parties reached an agreement based on the parameters set in earlier negotiations, which have been under way for some time. However, it is with regret that no agreement has been reached with Cell C at this stage,” it said.
Cell C said on Friday that it was in disagreement on proposals from its competitors, Vodacom SA and MTN, on interconnect rates, which it said, offered no significant changes to the current regime.
The agreement reached between the country’s largest mobile operators, MTN and Vodacom, proposes a blended interconnection rate of 78 cents, which declines to 61 cents on a glide path.
However, Cell C branded itself a smaller player and called for smaller operators to pay a lower mobile termination rate than its larger rivals.
Chief executive Lars Reichelt said: “Cell C maintains its position on a once-off reduction of 40% in the peak interconnection rate and a flat rate of 75 cents, as this is common practice in 22 of 28 countries in the European Union. This international best practice leads to more competitive pricing and it is only through competition that retail rates will go down.
“In addition, and as supported by the study conducted by the European Union in 2007, mobile termination rate asymmetry is the best way to ensure a levelled playing field, again to increase competition. Cell C is therefore proposing that Vodacom and MTN pay the smaller operators a mobile termination rate of 75 cents per minute whilst the smaller operators, including Cell C, pay Vodacom and MTN a rate of 65 cents,” he said.
According to MTN, in terms of due process, the two parties (Vodacom and MTN) would now need to lodge the agreement with the Independent Communications Authority of South Africa (Icasa) for its regulatory oversight.
“MTN SA is pleased that progress has been made in the negotiations, and will continue to engage in good faith with other parties as part of the Icasa process to resolve outstanding interconnect agreements. MTN SA believes that the agreement reached with Vodacom will have the effect of lowering mobile termination rates without impacting too heavily on jobs, investment, access and penetration,” it concluded. — I-Net Bridge