RESOLUTION
OF THE PORTFOLIO COMMITTEE ON COMMUNICATIONS ON MEASURES TO REDUCE
INTERCONNECTION RATES IN
The
Portfolio Committee on Communications, having received briefings on
15 September
2009 from the Independent Communications Authority of South Africa (ICASA), the
Competition Commission and the Department of Communications on measures that
can be taken to reduce the high cost of interconnection and call termination
rates in
Believes
that:
i) interconnection rates in
ii) this is the
consequence of apparent historical collusion between dominant mobile operators
in the country - which has placed profits and greed above people - and the
incapacity of ICASA to effectively regulate this matter;
iii) the high costs of mobile and fixed line telecommunications
has impacted adversely on the South African economy and negatively on citizens,
particularly the poor and marginalized; and
iv) there is unanimity
in industry, government, other relevant stakeholders and the regulatory
authority that the present situation is socially indefensible and economically
unjustifiable.
Resolves that the Committee holds public
hearings on the 13th and 14th of October 2009 on the
following proposals:
1) mobile and telecoms operators drop the interconnection rates with
effect from 1 November 2009 to 60 cents per minute during peak times;
2) interconnection
rates be further reduced by 15 cents annually on the 1 November for each
successive year until 2012; and
3) as a general rule
the progressive reductions in interconnection rates between 2009 and 2012
should yield concomitant reductions in the actual consumer (retail) prices of
telecommunications.
Further
resolves that:
i) the Minister
of Communications finalises the performance
management system of ICASA Councillors as embodied in
the ICASA Act (No 4 of 1999) and the Department of Communications should report
on the matter to the Portfolio Committee by the 30 November 2009; and
ii) ICASA should act professionally, effectively
and boldly to regulate interconnection rates in
The
Committee declares that it is willing to introduce in the next session of
Parliament, a Committee Bill to amend the Electronic Communications Act (No 36
of 2005) so as to enable ICASA to act swiftly in this matter.
Report to be considered.