Trade union Solidarity has demanded that the communications regulator enforces an interconnect rate of no more 60c for the time being.
The union says it has sent the Independent Communications Authority of SA (ICASA) a memorandum, which has called for the cut, as well as an investigation into the true costs of interconnection among operators.
Solidarity`s statement follows meetings held between ICASA and the operators earlier this week, which led to an industry agreement to begin the process of negotiating new interconnect rates. Despite the regulatory intervention, the operators will be free to negotiate their own fees, as long as they are lower.
ICASA did not set a maximum rate for the operators; however, some industry watchers have noted that if ICASA sets the rate, the operators would only drop interconnect fees by the prescribed amount.
Solidarity says it welcomes the talks between the stakeholders, but warns that a slight fee reduction will not be acceptable. "Consumers currently pay exorbitant tariffs for this service, while cellphone companies benefit from the excessively high tariffs for a service that actually costs a lot less to provide," says Solidarity spokesman Jaco Kleynhans.
The trade union argues that ICASA must drop the current interconnect fee, which has been fixed at R1.25 for cellphone-to-cellphone and landline-to-cellphone calls, to a maximum of 60c per minute.
Last week`s meeting saw the operators agree to new negotiations, which have to be completed by December. The negotiations will have to also incorporate aspects of competition law.
Operators have also agreed to have full implementation of the new rates as soon as February next year.
The value of lower interconnect rates has been a hot topic over the last few weeks, sparked by Independent Democrats leader Patricia de Lille, who took the matter to the competition authorities and the regulator, demanding action.
Some of the alternate telecoms operators took up De Lille`s cry, saying high interconnect has kept them from competing effectively.
The regulator is unlikely to prescribe the actual rate of interconnect and was not available this morning for comment on the matter.
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