Cellphone rates will, initially, be reduced by 36 cents from early next year, Communications Minister Siphiwe Nyanda announced on Thursday.
Speaking in the National Assembly, he said the new agreed reduced cellphone termination rates by Cell C, Vodacom, and MTN would be 89 cents in peak times and 77 cents off peak.
Currently, subscribers paid R1,25 in peak times and 77 cents off-peak.
The new rates would come into effect on February 1 for Vodacom and Cell C, and March 1 for MTN, Nyanda said.
This would allow the cellphone operators and small, medium and micro enterprises to re-align their business operations accordingly.
”This … is putting money back in the pockets of ordinary South Africans who need it more now than ever,” he said.
The interconnection rate is the fee one network charges another for receiving calls on its network.
Nyanda said cellphone operators had also committed to introduce new and affordable retail products based on the new rates from December
1.
High rates were impeding any possibility of new entrants to the market.
”I’ve been assured that these developments would further introduce more competition in the retail market,” he said.
The commitments received were within the operators’ business imperative parameters and were voluntary.
Further consultations between the operators and the Independent Communications Authority of South Africa would still be constituted to conclude the interconnect agreements.
Other communications costs would also still be investigated, Nyanda said. – Sapa