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S.Africa proposes big cut in mobile network fees by 2017
September 4, 2014 / 5:31 PM / 3 years ago

S.Africa proposes big cut in mobile network fees by 2017

JOHANNESBURG, Sept 4 (Reuters) - South Africa’s telecoms watchdog proposed a 60 percent cut in fees mobile operators charge rivals for using their networks, a senior official said on Thursday, as part of a plan to reduce call costs in Africa’s most advanced economy.

Katharina Pillay, councillor at the Independent Communications Authority of South Africa, told a local radio station the proposals would cut mobile termination rates to 8 rand cents ($0.01) per minute from 20 cents by March 2017.

The new rates would be published in a government gazette on Friday for public input before they are made official, Pillay said.

Such fees are a vital element of the mobile telecoms industry because they allow companies to enter the market by paying fees to use existing networks. But the regulator argues that if they are too high they deter competition.

1 US dollar = 10.7147 South African rand Reporting by Tiisetso Motsoeneng; editing by Keiron Henderson

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