Cell C has once again come out strongly in support of Icasa's investigation into the costs of interconnection charges, urging the regulator to provide a cost-based rate structure in determining these for licensees with "significant market power."
“For Cell C, the key element of the inquiry will be to ascertain whether there is competition in the broader market – fixed and mobile,” says Vanashree Pillay, Cell C’s executive head for corporate communications. “Should this not be the case, Icasa must then identify the players in the telecommunications industry who have significant market power.
“Subsequently, we would expect the cost of interconnection with regard to these dominant players, whether they be mobile or fixed-line operators, to be reduced,” adds Pillay. “This would give Cell C the necessary room, as a late entrant to the market, to compete on an effective basis – something which it was denied on licensing."
The company says it hopes the inquiry will focus equally on both mobile and fixed interconnection rates as the ratio between these rates in South Africa should mirror international benchmarks. This is currently not the case.