/ 9 November 2009

Union ‘shocked’ by Icasa’s failure to regulate industry

The Independent Communications Authority of South Africa (Icasa) was unable to regulate the telecommunications industry, enabling cellphone operators to exploit the poor, the Communication Workers’ Union (CWU) charged on Monday.

”CWU is shocked by the inability of Icasa to regulate the sector … in particular with regard to the exorbitant interconnect fees.

”They have proved that they will do nothing to support the developmental agenda and have single-handedly ensured that the poor remain in shackles due to the high interconnect fees,” said CWU spokesperson Richard Poulton.

Interconnect rates are the amounts charged by networks for carrying calls on behalf of one another.

”They, Icasa, should develop regulations to comply with the policy directive issued by the [Communications] Minister Siphiwe Nyanda.

”The fundamental problem of the high interconnect fees relates to policy,” said Poulton.

”The ‘managed liberalisation’ policy has failed the poor and has mainly benefited the rich and business.

”Icasa is a very good agent of globalisation, but a very bad agent on behalf of the poor,” he said.

The policy directive relates to Nyanda’s order that Icasa slash the rates consumers pay by November 30.

”We welcome the effective policy directive issued by the Department of Communication and the minister.

”The new minister is on the right track and should ensure that the department contributes its share towards attainment of the key priority areas as per the manifesto,” said Poulton. — Sapa