Telkom welcomes the new Call Termination Rates
Telkom welcomes the new Call Termination Rates (CTRs) issued by the Independent
Communications Authority of South Africa (ICASA) on 29 January 2014. CTRs
refer to the fee that one network charges another for receiving and terminating
calls on its network.
The revised CTRs will substantially contribute to reducing the cost of
communication and the consumer will be the biggest beneficiary.
Dr Miriam Altman, Head of Strategy at Telkom said she was encouraged by
the introduction of the new Call Termination Rates.
"This brings the market closer to parity in termination rates, supporting
the move to convergence between fixed and mobile services. Telkom has for
many years subsidised the dominant mobile operators, and this move will
begin to level the playing field.
Telkom will pass on reductions to consumers and will communicate these
savings once it has fully assessed the impact of the regulations," said
Following notification from ICASA, the incumbent mobile cellular operators
are expected to reduce their Mobile Termination Rate (MTR) from 40c today
to 20c as of 1 March 2014. The MTR's for small mobile operators like Cell
C and Telkom Mobile will remain at 44c. The fixed termination rate for
Telkom remains at 12c in respect of local interconnection for the coming
year, while the rate for the national interconnections will fall from 19c
to 16c. By March 2017, the call termination rates for the major operators
will be unified at 10c, with continued, albeit falling, asymmetry for small
mobile and fixed operators.