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Electronic Communications Act, 2005 (Act No. 36 of 2005)

Regulations

Reasons Document to the Amendment of the Call Termination Regulations, 2014

2. Introduction

 

2.1 Following the review of the 2010 Call Termination Regulations, the Authority published the 2014 Call Termination Regulations on 30 September 2014. The 2014 Call Termination Regulations determined that the Mobile termination markets and the Fixed termination markets, as defined in regulation 3 of the 2014 Call Termination Regulations, exhibited ineffective competition and further that the following market failures within fixed and mobile termination continue to exist:
(a) A lack of provision of access;
(b) The potential for discrimination between licensees offering similar services;
(c) A lack of transparency; and
(d) Inefficient pricing.

 

2.2 To remedy the abovementioned market failures, the Authority imposed an obligation upon all licensees to charge fair and reasonable prices for wholesale voice call termination in terms of regulation 7(2) of the 2014 Call Termination Regulations. Additional obligations in the form of the publication of a reference interconnection offer and price control (cost-based pricing) were imposed upon Vodacom (Pty) Ltd, and MTN (Pty) Ltd in the Mobile termination markets, and Telkom SA SOC Limited in respect of the Fixed termination markets, in line with regulation 7(3) of the 2014 Call Termination Regulations.