South Africa - The Regulator's proposed reduction in interconnection rates is much less than govt and parliament want

[itweb] Interconnect rates should be cost-based, with a reasonable mark-up not exceeding 50% of cost, says the Independent Communications Authority of SA (ICASA).

The regulator met with the operators yesterday in another closed meeting to determine how far the operators have come in renegotiating interconnect rates. Earlier this year, the regulator and operators agreed to begin cutting the rate of interconnect, starting in February 2010.

The operators said they would start implementing a new way of negotiating interconnection rates and would have the new contract agreements in place by the end of December, with full implementation of the new rates as soon as February next year.

While the regulator expected to see some movement on the new negotiations yesterday, ICASA's statement says the industry is in the process of finalising “bilateral discussions on the final [interconnect] rate”.

The statement says the operators are still in the process of negotiations and will meet again near the end of the month when it will consider the final proposals on interconnect. Sources close to the situation say the operators have signed an agreement not to discuss the matter with the media.

ICASA suggests interconnect rate - The regulator's proposed rate is a far cry from what the DOC is looking for