The South African government is holding public hearings as part of plans to push mobile and telecommunications operators to reduce interconnection fees, in an attempt to lower telecommunications costs that have affected the country’s growth.
In its submission to the Parliament this week, Vodacom argued that a dramatic reduction of charges is likely to have a negative impact on government policy objective of universal access and will be disruptive to the economy and communications industry.
Vodacom interconnection revenue, which includes income from the country’s third largest mobile phone operator, Cell C, for national roaming services, rose by 8.6 percent to R8.63 billion for the year to end-March.
Currently, mobile phone and telecommunications operators charge R1,25 per minute in peak times for their interconnection fee, a charge to enable calls to be transmitted from each other’s networks.
To read the article titled, “Cellphone fees cut may disrupt SA economy,” click here.