South Africa's MTN to Challenge MTR Cuts in the Courts
Published on: 12th Feb 2014
By: Simon Davies
South Africa's MTN has confirmed that it plans to challenge the telecoms regulator's plans to amend the mobile termination rates in the courts.
The legal move comes after the regulator, ICASA announced new MTRs that heavily bias the rates towards the country's two smallest mobile networks.
Under the new plans, the larger mobile networks will have to pay 44c/minute to Cell C and Telkom Mobile to accept inbound calls, while the two smaller networks only have to pay 20c/minute if they accept a call from a customer on the larger networks.
"MTN has exhausted all avenues of engagement with the regulator on this matter and is left with no alternative but to pursue its legal options," Zunaid Bulbulia, the chief executive of its South Africa network said in a statement
The other large network, Vodacom has also expressed concerns about the changes, but said that its concerns are more about the procedures used which it feels are not cost based.
As last September, Vodacom and MTN had market shares of 43% and 36% respectively, while Cell C and Telkom Mobile held 17% and 2.2% of the market, respectively.