MTN South Africa (SA) and Vodacom have agreed to lower termination rates bu 19% immediately, with further cuts to follow.
MTN SA can confirm that an agreement has been reached with Vodacom, and is 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 underway for some time. However, it is with regret that no agreement has been reached with Cell C at this stage.
These bilateral negotiations take place in terms of the regulations by the Independent Communications Authority of South Africa (ICASA), which has oversight over the process.
In terms of the agreement, the parties proposed approximately 19% immediate reduction of the blended wholesale interconnect tariffs, with further reductions year-on-year for the following three years.
This reduction cycle will enable MTN SA to make the necessary changes to its operations and long-term commitments to reflect the decrease in interconnect rates.
In terms of due process, the two parties will now need to lodge the agreement with ICASA (Independent Communications Authority of SA) for their regulatory oversight.
In a statement, Vodacom says its has been conducting bilateral discussions with the other mobile operators to reach a fair and reasonable agreement that will be mutually sustainable to all parties.
"The bilateral negotiations, which have taken place under the regulations of ICASA has resulted in an agreement being reached between Vodacom and MTN. This agreement proposes a blended interconnection rate of R0.78, which declines to R0.61 on a glide path," he statement reads.
"Unfortunately we have been unable to reach agreement with Cell C who has insisted on an asymmetric approach. Vodacom does not believe that Cell C is a new entrant to the market and therefore does not support Cell C’s assertion. However, we continue to support the process and trust that an agreement will be reached shortly."