call termination regulations

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[6 June 2025]

Just a heads-up: new maximum rates for call termination go into effect on July 1, 2025. This means the highest amount that can be charged for ending a call on a network will change.

Mobile termination rates (maximum)(Rands per minute ex VAT)

Type of operatorCurrent1 July 20251 July 20261 July 2027
Large (Voda, MTN)R0.09R0.07R0.05R0.04
Small (everyone else)R0.13R0.09R0.05R0.04
New (up to 3 years after market entry)R0.09R0.07R0.05

Fixed termination rates (maximum)(Rands per minute ex VAT)

Type of operatorCurrent1 July 20251 July 20261 July 2027
Large (Telkom)R0.06R0.05R0.04R0.01
Small (everyone else)R0.06R0.05R0.04R0.01
New (up to 3 years after market entry)R0.06R0.05R0.02

[9 December 2024]

ICASA has finalised further amendments to the Call Termination Regulations 2014, which will come into effect on 1 July 2025.

Call Termination Amendment Regulations 2024

[4 June 2024]

The public hearings regarding ICASA’s proposed changes to the call termination regulations will take place on 13 June 2024, both online (via Teams) and in-person at ICASA’s headquarters.

Agenda for Call Termination Public Hearings – 13 June 2024

Below are links to the responses submitted for the proposed amendments:

[22 March 2024]

South Africa’s communications regulator, ICASA, is proposing significant cuts to call termination fees for local phone calls. They’re also looking to tackle high fees for calls coming into South Africa from abroad.

You can weigh in on these proposed changes by submitting your comments in writing by 4pm on May 10th, 2024. Send your emails to CTR2021@icasa.org.za.

Draft Call Termination Amendment Regulations 2024

Proposed rate reductions:

Termination to a mobile device (cents per minute ex VAT)

type of operator

current from 1 July 2024 from 1 July 2025

large

9 7 4
small 13 9

4

new 7

7

Termination to a fixed device (cents per minute ex VAT)

type of operator

current from 1 July 2024

from 1 July 2025

large 6 4

1

small 6 4

1

new 4

4

[9 January 2024]

Telkom dropped its court case against a government decision about phone call prices. They filed a notice to withdraw the case in December 2023 without explanation.

This means the government agency (ICASA) can now move forward with its plans to update the phone call price regulations. They will be finalizing the details throughout 2024.

There are still some minor legal issues about who pays for the court case, but overall the main case is over.

[19 September 2023]

After additional discussions between ICASA and telecoms companies, here are the comments received on the suggested cost-modeling methods.

[13 September 2023]

ICASA continues to move forward with its review of the Regulations. They recently released a briefing note on the cost modelling phase.

ICASA Methodology Briefing Note on the CTR Review 2021 Cost Modelling Phase August 2023

[2 June 2023]

Despite a lawsuit by Telkom to delay the review until a review of ICASA’s current findings document, ICASA announced they will move forward with their review of regulations for ending voice calls to South African phone numbers.

Call Termination Rate Review Notice 26 May 2023

Guide on bottom-up and top-down shell models for the determination of mobile and fixed-line wholesale voice call termination rates (2 June 2023)

The cost modeling process will be conducted in three steps:

  • Step 1: Information Gathering (Request for Information & Meetings)
    • Following an initial workshop on May 31, 2023, ICASA will request information from all licensees regarding the structure and data used in their top-down and bottom-up cost models.
    • Licensees will have 21 business days to respond. ICASA may then schedule individual meetings for clarification.
    • Licensees will have a chance to ask clarifying questions, and ICASA will publish responses to all.
  • Step 2: Draft Regulations
    • After completing the cost modeling exercise, ICASA will publish draft regulations for public comment.
    • The comment period will last 30 business days, followed by public hearings if deemed necessary.
  • Step 3: Final Regulations
    • Once all comments are reviewed, ICASA will finalize and publish amendments to the Call Termination Regulations 2014.

[25 September 2022]

Telkom is unhappy with a decision by ICASA (South Africa’s communications regulator) and is asking the High Court to take another look.

Specifically, Telkom disagrees with ICASA’s plan to get rid of a system where smaller operators like Telkom charge bigger ones like Vodacom and MTN slightly higher rates to connect calls. Telkom argues this change will hurt competition and consumers in the long run.

Here’s the breakdown:

  • Current system: Telkom charges Vodacom and MTN 9 cents per minute to connect calls, while Vodacom and MTN charge Telkom only 13 cents per minute (excluding tax). This difference is meant to help smaller operators compete.
  • ICASA’s plan: Get rid of this difference and make everyone charge the same rate.
  • Telkom’s argument: This will make it harder for Telkom to compete and ultimately lead to less choice and higher prices for consumers.

[2 September 2022]

ICASA has issued a tender looking for a company to help them figure out fair prices for mobile and landline calls. To do this, they’ll use two methods: analyzing existing costs (top-down) and estimating new costs from scratch (bottom-up). This is the first step before they take a closer look at the whole call termination market in South Africa.

[28 March 2022]

ICASA wrapped up the initial stage of its investigation into how to promote competition within the market for completing phone calls on other companies’ networks (wholesale call termination) by publishing a document outlining its conclusions.

Findings Document on the Review of the 2014 Pro-competitive Remedies imposed on Licensees

Summary of findings

The investigation into wholesale voice call termination services in South Africa revealed several key points:

  • Lack of Competition: Current market forces, both for businesses and consumers (retail and wholesale), are unlikely to prevent service providers from setting unfairly high termination rates.
  • Market Definition: The investigation identified two distinct markets: mobile termination and fixed termination (including international calls).
  • Market Power: Each company offering termination services controls 100% of calls ending on their network, giving them significant power over pricing.
  • Market Failures: Without regulation, the issues identified in 2014 would likely re-emerge.
  • Proposed Solutions: To address these problems, the Authority will require cost-based pricing models (with some adjustments) and establish standard interconnection offers.
  • Next Steps: A separate notice will be published outlining the upcoming process for determining cost models.

[21 January 2022]

ICASA is holding public hearings to discuss competition in the phone call market. This follows feedback they received on their initial ideas. Anyone can attend the hearings, which will be held online via Microsoft Teams on February 7th, 2022, starting at 8:15 am and running until 5 pm.

Public hearings: Discussion Document – Review of the Pro-competitive Conditions imposed on Licensees in terms of the Call Termination Regulations, 2014

Submissions received can be seen below:

[7 November 2021]

Discussion document on the review of the pro-competitive conditions imposed on licensees

South Africa’s communications regulator, ICASA, is moving forward with its review of competition in the wholesale call termination market. They’ve released a public discussion document for your feedback.

  • Share your thoughts by: Tuesday, January 11th, 2022 at 4:00 pm SAST.
  • Email your comments to: CTR2021@icasa.org.za

This is the second stage of the review process. Here’s what happens next:

  1. ICASA will review all written submissions.
  2. Public hearings may be held (if needed).
  3. ICASA will publish a findings document summarizing the review.
  4. The findings document may include proposed changes to the current regulations (if necessary).

[29 June 2021]

The regulator has clarified the questionnaire and review process for the call termination regulatory regime. You can find their explanations online. Our records indicate the deadline to submit your completed questionnaire is August 31st, 2021. However, it’s advisable to double-check the official deadline for any updates.

Response to stakeholders questions of clarity on the review of the 2014 call termination regulations

[7 June 2021]

The South African communications regulator, ICASA, will be reviewing the regulations concerning how voice calls are completed on local phone networks.

Notice on the review of Call Termination Regulations

Annexure B questionnaire for the review of Call Termination Regulations

ICASA conducts a workshop to review the 2014 Call Termination Regulations (media release)

The first review in 2010 led to a decrease in call termination rates. This new review aims to see if the current system is working and if any adjustments are needed.

The Review Process:

The review will happen in four stages:

  1. Information Gathering: This involves completing a questionnaire (linked below). A workshop is scheduled for June 11th, 2021, to discuss the review and answer questions about the questionnaire. Questions after the workshop should be submitted by June 18th and will be answered within five business days. You’ll have 45 working days to complete the questionnaire.
  2. Discussion Document: ICASA will analyze the responses and research to create a discussion document. This document will be open for public comment for another 45 working days.
  3. Public Hearings: These may be held if necessary.
  4. Findings Document: ICASA will publish a final document outlining their findings.

[14 September 2020]

For informational purposes, a reduction in wholesale voice call termination rates, mandated by ICASA, took effect on 1 October 2020.

Fixed call termination rates:

Period Regulated Rate Allowed Asymmetry
1 October 2017 – 30 September 2018

R0.10

R0.12

1 October 2018 – 30 September 2019

R0.09

R0.10

1 October 2019 – 30 September 2020

R0.07

R0.08

1 October 2020 – 30 September 2021

R0.06

R0.06

Mobile call termination rates:

Period Regulated Rate Allowed Asymmetry

1 October 2017 – 30 September 2018

R0.13 R0.19
1 October 2018 – 30 September 2019

R0.12

R0.18

1 October 2019 – 30 September 2020

R0.10

R0.16

1 October 2020 – 30 September 2021 R0.09

R0.13

[7 October 2019]

For informational purposes, a reduction in wholesale voice call termination rates, mandated by ICASA, took effect on 1 October 2019.

Fixed call termination rates:

Period Regulated Rate Allowed Asymmetry
1 October 2017 – 30 September 2018

R0.10

R0.12

1 October 2018 – 30 September 2019

R0.09

R0.10

1 October 2019 – 30 September 2020

R0.07

R0.08

1 October 2020 – 30 September 2021

R0.06

R0.06

Mobile call termination rates:

Period Regulated Rate Allowed Asymmetry

1 October 2017 – 30 September 2018

R0.13 R0.19
1 October 2018 – 30 September 2019

R0.12

R0.18

1 October 2019 – 30 September 2020

R0.10

R0.16

1 October 2020 – 30 September 2021 R0.09

R0.13

[26 December 2018]

The Independent Communications Authority of South Africa (ICASA) published a document on December 21, 2018, explaining the reasons behind the changes made to the call termination regulations in 2018.

Reasons Document Call Termination Amendment Regulations 2018

[28 September 2018]

The Independent Communications Authority of South Africa (ICASA) has finalized the Call Termination Regulations. These regulations will be enforced starting October 1st, 2018.

Call Termination Amendment Regulations, 2018

[26 September 2018]

The Independent Communications Authority of South Africa (ICASA) issued a press release to inform the public about the implementation of a new call termination rate regime, effective October 1, 2018.

ICASA to publish final Call Termination Regulations

The new glide path is as follows:

Fixed call termination rates:

Period Regulated Rate Allowed Asymmetry
1 October 2017 – 30 September 2018

R0.10

R0.12

1 October 2018 – 30 September 2019

R0.09

R0.10

1 October 2019 – 30 September 2020

R0.07

R0.08

1 October 2020 – 30 September 2021

R0.06

R0.06

Mobile call termination rates:

Period Regulated Rate Allowed Asymmetry

1 October 2017 – 30 September 2018

R0.13 R0.19
1 October 2018 – 30 September 2019

R0.12

R0.18

1 October 2019 – 30 September 2020

R0.10

R0.16

1 October 2020 – 30 September 2021 R0.09

R0.13

[27 August 2018]

ICASA made two additional announcements about the proposed regulation changes. The first clarifies a definition in the draft, and the second informs stakeholders about public hearings on September 10th, 2018. If you’d like to speak at the hearings, contact ICASA by September 3rd, 2018 at ctrreview@icasa.org.za.

22 August 2018 – Erratum to Draft Call Termination Amendment Regulations 2018

Notice of Public Hearings

[18 August 2018]

The South African communications regulator, ICASA, is asking for your input on proposed changes to how phone call charges are set.

They’ve released a draft document called the “Call Termination Amendment Regulations, 2018” and want to hear what you think.

Let them know your thoughts by September 7th, 2018 by emailing ctrreview@icasa.org.za.

Draft Call Termination Amendment Regulations 2018

[28 June 2018]

ICASA issued a briefing note to explain its decisions on asymmetry in call termination charges. This follows their review of the pro-competitive conditions set for licensees in 2014.

ICASA briefing note on asymmetry

[14 February 2018]

Two new documents were released to help finalize the ongoing review of call termination regulations.

ICASA briefing note on asymmetry

ICASA briefing note on November 2017 submissions from operators

The Council is proposing to allow you to continue charging different rates to connect calls to your network (asymmetrical termination rates) if your market share is less than 20%. This is to help you compete with bigger players.

  • This benefit is temporary and ends in 2020.
  • New companies joining the market will only have 4 years before they need to switch to the same rates as everyone else (symmetrical rates).

Contact the Call Termination Council Committee at CTRreview@icasa.org.za.

[26 November 2017]

ICASA published a briefing note on the discussions held during a workshop on voice call termination cost modelling (13 November 2017) and separate meetings with licensees (15-16 November 2017).

ICASA briefing note industry workshop and one-on-ones (wholesale voice call termination rates)

[9 October 2017]

The Independent Communications Authority of South Africa (ICASA) officially approved the amendments to the Call Termination Regulations 2017, as detailed in the Discussion Document released on September 22, 2017.

Call Termination Second Amendment Regulations 2017

[22 September 2017]

ICASA hasn’t made a decision on a new glide path and is prolonging the current system established in the 2014 Call Termination Regulations.

Call Termination Amendment Regulations 2017 & Findings Document

Media Release: ICASA publishes its findings in respect of the review of Call Termination Regulations

The applicable rates until 30 September 2018 are accordingly:

Fixed call termination rates:

Period Regulated rate Asymmetry (Maximum)
W0N B0N W0N B0N
1 October 2016 – 30 September 2018 R0.10 R0.10 R0.12 (20%) R0.12 (20%)

Mobile call termination rates:

Period Regulated rate Asymmetry
1 Oct 2016 – 30 September 2018 R0.13 R0.19 (46%)

ICASA issued a media release summarizing its review of the 2014 Call Termination Regulations. Here are the key takeaways:

  • The definitions of mobile and fixed termination markets remain the same, except for excluding international calls.
  • Competition in these markets is still weak.
  • Each network operator has significant power in their own network for call termination.
  • The potential for market failures identified in the regulations still exists.
  • The existing regulations promoting competition are still necessary.

The release also addresses concerns about the time needed to set new call termination rates. ICASA has extended the current grace period by 12 months to allow for further study.

Next Steps

  • ICASA will publish a detailed plan on its website by September 30th, 2017, outlining how they will determine new rates through consultation.

Contact

For inquiries, email CTRreview@icasa.org.za.

[10 June 2017]

Following a review of the pro-competitive conditions outlined in the Call Termination Regulations 2014, ICASA has released a public notice and discussion document. This document details their analysis of those conditions and invites public input.

Link to the discussion document

ICASA’s Review of Call Termination Rates

Findings:

  • Network categories for mobile and fixed calls (defined in regulations) remain the same.
  • Competition in both mobile and fixed call termination markets is still lacking.
  • All companies offering call termination services are considered to have significant market power.
  • The reasons limiting competition (listed in regulations) continue to exist.
  • The regulations set in 2014 to promote competition are still necessary.

Public Input:

  • You can comment on this analysis until July 10th, 2017 (21 days after publication on June 9th).
  • Send comments by email to ctrreview@icasa.org.za, addressed to the Chairperson of the Call Termination Committee.

Next Steps:

  • ICASA will review the comments and decide if public hearings are needed.
  • Based on the feedback, a final report with findings will be published.
  • The goal is to determine new call termination rates by September 30th, 2017.

[1 March 2017]

ICASA has addressed questions about their review of competition rules for phone call providers (Call Termination Regulations). You can find more information in a recent media statement.

They’ve extended the deadline to submit information about the call termination market (Call Termination Market Info Questionnaire) until March 24th, 2017.

To answer any questions you have about the review process, there will be a meeting at ICASA’s head office on March 24th, 2017 from 10:00 am to 1:00 pm.

Briefing note – Questionnaire

Media release

[10 February 2017]

The notice requesting information for the review has been published in the government gazette and is available for your reference below.

Review of the pro-competitive conditions imposed on licensees in terms of the call termination regulations 2014

[30 January 2017]

South Africa’s communications regulator, ICASA, is looking at the regulations that control the fees phone companies charge each other to complete calls.

Media release: ICASA reviews pro-competitive conditions imposed on licensees in respect of the Call Termination Regulations of 2014

Licensees have until 4:00 pm on February 28, 2017 to complete and submit a questionnaire to initiate the review process. They can email the completed questionnaire to ctrreview@icasa.org.za.

2016 Call Termination Market Info Questionnaire

ICASA is accepting questions about a questionnaire from licensees. The deadline to submit questions is February 13, 2017 at 4:00 pm. ICASA will then publish a list of Frequently Asked Questions (FAQ) with answers on their website.

[21 March 2016]

Cell C dropped its request to review the 2014 Call Termination Regulations, especially the mobile termination rates and asymmetry (see December 18, 2014 entry for details).

The current rules set fixed and mobile termination rates until September 2017. Since the communications regulator, ICASA, will launch a new review process soon, Cell C likely decided the delays in the previous process made their request pointless.

[30 March 2015]

The Independent Communications Authority of South Africa (ICASA) issued a document outlining the rationale behind its stance on the Call Termination Regulations 2014.

CTRs 2014 Reasons Document 25 March 2015

[23 March 2015]

South Africa’s communications regulator, ICASA, released a statement on its decision regarding a complaint filed by the Internet Service Providers’ Association (ISPA) against MTN. The complaint challenged MTN’s practice of charging different fees to connect international calls compared to local calls.

ISPA v MTN Media Statement International Interconnect

The complaint by ISPA stemmed from a notification sent by MTN to some of its members on October 22nd, 2014.

“All international originated voice traffic destined for the MTN network will be charged a 0.25USD/minute or equivalent thereof in South African Rand (ZAR) or any other foreign currency as termination rate as of 1 November 2014.

Internationally originated voice calls transiting on MTN’s network to other South Africa networks will be charged at 0.25USD/minute or equivalent thereof in South African Rand (ZAR) or any other foreign currency as termination rate as of 1 November 2014.”
ICASA has come out strongly against MTN’s proposed tariff differentiation:

Differentiation between traffic originating within and outside the borders of South Africa

  • The Call Termination Regulations, Government Gazette No. 38042 of 30 September 2014 (“the Regulations”) make no distinction between termination services for voice calls originating within and outside of the borders of South Africa.
  • The service offered by MTN to other licensed operators constitutes termination services as defined in terms of the Regulations.
  • By charging a different rate for termination between licensed operators in the manner that it has, MTN is in breach of the non-discrimination principles as per section 37 (6) of the Electronic Communications Act.

Amendment of interconnection agreements

  •  Regulations 17 and 19 of the Interconnection Regulations, 2010, Gazette Number 33101 of 9 April 2010 state that an interconnection agreement and interconnection amendment agreement must be submitted to the Authority in terms of section 39 of the Act for filing. Any amendment to an interconnection agreement must comply with regulation 7, read with section 39 of the Act, failing which the amendment would be invalid.

  •  The Authority therefore determines that the notice by MTN informing its interconnection partners what it would charge its interconnection partners is a unilateral amendment of the interconnection agreement. The conclusion of an interconnection agreement must meet the first prerequisite of a contract, which is that parties have reached agreement, as envisaged in section 37(4) of the Act. Therefore the current terms of the interconnection agreements remains binding, until there is mutual agreement between the parties to amend.

MTN has been ordered by ICASA to stop charging local interconnection partners USD0.25 immediately. The order enforces the Call Termination Regulations, 2014, as specified in interconnection agreements.

It remains to be seen whether this will be challenged, but for now we welcome further clarity on the scope of application of the Call Termination Regulations 2014. ICASA is also to be congratulated on acting firmly and expeditiously.

[18 December 2014]

Cell C, recognizing how important termination rates are to their financial health, announced they want to review the Call Termination Regulations from 2014. Specifically, they’re interested in the mobile termination rates and the allowable asymmetry outlined in the regulations. To understand how these rates were set, Cell C also requested detailed information from ICASA, the South African communications regulator.

Notice of Motion_ Cell C application for review

[30 September 2014]

The Independent Communications Authority of South Africa (ICASA) finalized the Call Termination Regulations in 2014. These rules, including the set rates, took effect on October 1st, 2014.

Call Termination Regulations 2014

A significant difference has been identified between the proposed rates and those outlined in the previously shared draft. An explanation will be provided in a forthcoming document. It appears these discrepancies stem from errors in the modeling process conducted by ICASA to determine the rates and the level of asymmetry.

Fixed call termination rates:

Period Regulated rate Asymmetry (Maximum)
W0N B0N W0N B0N
1 October 2014 – 31 September 2015 R0.12 R0.15 R0.18 (50%) R0.21 (40%)
1 October 2015 – 31 September 2016 R0.11 R0.12 R0.15 (36%) R0.16 (33%)
1 October 2016 – 31 September 2017 R0.10 R0.10 R0.12 (20%) R0.12 (20%)

Mobile call termination rates:

Period Regulated rate Asymmetry
1 Oct 2014 – 30 Sep 2015 R0.20 R0.31 (55%)
1 Oct 2015 – 30 Sep 2016 R0.16 R0.24 (50%)
1 Oct 2016 – 30 Sep 2017 R0.13 R0.19 (46%)

[18 August 2014]

ICASA is setting new rules for call termination rates. A court threw out the old rules, so ICASA released a memo explaining how they’ll decide how much to lower the rates. They’ll use a method called “Long-Run Incremental Cost Plus” (LRIC+) to figure out the costs.

Briefing Note on Cost Standards For Call Termination

[28 May 2014]

ICASA published a Q&A on the questionnaires following their workshop last Friday, May 23rd. The deadline to submit responses is now June 20th, 2014.

Briefing note on issues raised during the 2014 Wholesale Voice Call Termination Regulatory Review Workshop

[22 May 2014]

ICASA is taking steps to assess the South African market for wholesale voice call termination. They’ve sent out a questionnaire to licensed operators to gather information that will guide their decisions.

In addition to the information above, some helpful resources have also been provided.

ICASA is inviting responses to their questionnaires on the industry and public’s experience in the market. Here’s how to participate:

  • Format: Submit your responses in Excel format only.
  • Deadline: Friday, June 13th, 2014.
  • Submission Email: marketreview2014@icasa.org.za

In addition:

  • ICASA welcomes any questions or clarifications you may have about the questionnaires. They are hosting a workshop to address these on:
    • Date: Friday, May 23rd, 2014
    • Time: 10:00 AM – 3:00 PM
    • Location: Block C presentation room at ICASA head office

[23 April 2014]

Applicable rates to 30 September 2014:

Wholesale voice termination rate to a mobile location (market 1)

Period Rate
1 April 2014 – 30 September 2014 R0.20

Wholesale voice termination rate to a fixed location (market 2)

Period WON Rate BON Rate
1 April 2014 – 30 September 2014 R0.12 R0.16

Maximum asymmetrical rate in market 1 (mobile)

Period Maximum Rate
1 April 2014 – 30 September 2014 R0.44

Maximum asymmetrical rate in market 2 (fixed)

Period Maximum Rate WON Maximum Rate BON
1 April 2014 – 30 September 2014 R0.13 R0.21

(prices per minute ex VAT)

[11 April 2014]

A insightful analysis by Heather Irvine, a competition law expert at Bowmans, examines the challenges that the ICASA and the Department of Communications face following the ruling in the call termination dispute.

ICASA runs into power failure

[5 April 2014]

We now have ICASA’s response affidavit to the ones filed by MTN and Vodacom.

ICASA Non-confidential Answering Affidavit

[2 April 2014]

While we’re pleased with the High Court’s decision, we recognize it may not be universally popular.

Full judgement (external link to Techcentral)

[30 March 2014]

ICASA introduced a new complication in the MTN and Vodacom court case by issuing the Second Call Termination Amendment Regulations 2014. These regulations shorten the glide path to just one year by eliminating references to years two and three.

The exact start date of these regulations remains unclear. The South Gauteng High Court is expected to deliver a preliminary ruling on Monday, March 31st, 2014.

Second Call Termination Amendment Regulations 2014

[1 March 2014]

Vodacom challenged the Call Termination Regulations 2014 by filing an application to put a hold on them while the courts decide if they’re legal.

Vodacom ICASA CTRs Notice of Application and Affidavit

Vodacom ICASA CTRs Annexures to Affidavit

There’s still uncertainty about the exact timelines, but it seems like the following might happen:

  1. The two applications could be merged into a single one.
  2. If MTN’s application goes forward individually, opposing arguments need to be submitted by Monday, March 3rd, 2014.
  3. A court date to hear the case is likely to be set sometime in late March.

[20 February 2014]

ICASA announced in a follow-up statement that they’ve reduced the delay for the 2014 Regulations to only one month. They believe it’s important to resolve MTN’s request for temporary relief quickly. After reviewing the case, ICASA’s council also feels a one-month delay gives everyone involved enough time to prepare their responses properly.

ICASA Provides Further Update On Implementation Of Call Termination Regulations

The Independent Communications Authority of South Africa (ICASA) issued an amendment to the Call Termination Regulations in 2014 on February 19th. This amendment did two things: firstly, it postponed the start date of the new 2014 Regulations by one month, pushing it back from March 1st to April 1st, 2014. Secondly, it kept the older 2010 Regulations in effect for an extra month.

Call Termination Amendment Regulations 2014

[15 February 2014]

Due to a legal challenge from MTN (explained below), the Independent Communications Authority of South Africa (ICASA) decided to suspend the implementation of the Call Termination Regulations 2014.

Media Release To Update On Mobile Termination Rates
“The application is complex, comprising some 399 pages.  Affected parties are afforded very little time to respond, in that answering affidavits are required to be filed by 18 February 2014.  The urgent application was enrolled for hearing on 25 February 2014.

ICASA has decided that it is in the public interest for the urgent application to be heard and decided on a less urgent basis.  The High Court’s decision will have wide-ranging effects on the parties and the public at large, including subscribers for telecommunications services.

As such, it is important that the High Court is fully informed of all the relevant issues before making its decision and it is therefore necessary that the affected parties have sufficient time to properly prepare their answering papers, particularly given the complexity of the matter.

To this end, ICASA will shortly publish the Call Termination Amendment Regulations, 2014 (the Amendment Regulations) in terms of section 4(1) read with sections 4(7)(b) and 67(8) of the Electronic Communications Act, 2005 (Act No. 36 of 2005) (the ECA) which provisions confer on ICASA the power to make regulations without following the processes described in section 4(4) of the ECA where the public interest requires that a regulation should be made without delay.

The Amendment Regulations will be published to (i) delay the commencement of the 2014 Regulations from 1 March 2014 to 1 May 2014 and (ii) extend the operation of the Call Termination Regulations, 2010/11 (published under GN1015 in the Government Gazette 33698 of 29 October 2010).”

[13 February 2014]

MTN challenged the Call Termination Regulations 2014 in court. They argued that the new rules for call termination rates were unfair and asked the court to temporarily block them from going into effect. This could delay the entire regulation.

Review Application

[4 February 2014]

The South African government published the Call Termination Regulations for 2014 in the Government Gazette on February 4th, 2014.

[29 January 2014]

Today, ICASA revealed how they will lower call costs through a finalized termination rate structure.

ICASA Statement on 2014 Call Termination Regulations (29 January 2014)

The rates set are:

Table 1: Wholesale voice call termination rates to a mobile location (Market 1)

Period Rate
Current R0.40
1 March 2014 – 28 February 2015 R0.20
1 March 2015 – 29 February 2016 R0.15
1 March 2016 onwards R0.10

Table 2: Wholesale Voice Call Termination Rates to a Fixed Location (Market 2)

Period WON Rate BON Rate
Current R0.12 R0.19
1 March 2014 – 28 February 2015 R0.12 R0.16
1 March 2015 – 29 February 2016 R0.12 R0.12
1 March 2016 onwards R0.10 R0.10

Table 3: Maximum Asymmetry Rate for Market 1 (Mobile)

Period Rate
Current R0.44
1 March 2014 – 28 February 2015 R0.44
1 March 2015 – 29 February 2016 R0.42
1 March 2016 – 28 February 2017 R0.40
1 March 2017 onwards

Table 4: Maximum Asymmetry Rate for Market 2 (Fixed) Period

Period WON Rate BON Rate
Current R0.13 R0.21
1 March 2014 – 28 February 2015 R0.13 R0.21
1 March 2015 – 29 February 2016 R0.13 R0.13
1 March 2016 – 28 February 2017 R0.13 R0.13
1 March 2017 onwards R0.13 R0.13

[10 October 2013]

The Independent Communications Authority of South Africa (ICASA) has extended the deadline for comments on the Draft Call Termination Regulations 2013. The new deadline is November 15th, 2013. Additionally, ICASA has released an Explanatory Note to the Draft Call Termination Regulations 2013 to help people understand the draft regulations better.

[6 October 2013]

Call Termination draft regulations Final

ICASA has provided the following details (see below). Please submit your comments by 4:00 pm on October 24, 2013.

ICASA NOTICE OF PUBLICATION OF THE DRAFT CALL TERMINATION REGULATIONS AND AN EXPLANATORY NOTE TO ACCOMPANY THE DRAFT “CALL TERMINATION” REGULATIONS

4th October 2013

Johannesburg – The Independent Communications Authority of South Africa has made its determinations on the future of both mobile and fixed termination rates for the next three years, based on a review of industry conditions.

The revised rates are outlined in the tables below:

Table 1: Termination to a mobile location, 2014-2016
Termination Rate
Current R 0.40
01-Mar-14 R 0.20
01-Mar-15 R 0.15
01-Mar-16 R 0.10
Table 2: Termination to a fixed location: 2014-2016
Between 0N Within 0N
Fixed Termination Rate R 0.19 R 0.12

The Authority makes this determination based on a review of the effectiveness of competition in the market for call termination.In 2010 the Authority determined that ineffective competition existed in the provision of call termination because of, amongst others, inefficient pricing. The Authority imposed cost-oriented pricing on Vodacom and MTN for mobile termination and Telkom for fixed termination.The Authority finds that the market remains ineffective with extremely high levels of concentration, where the market for termination to a mobile location and the market for termination to fixed and mobile locations have a Herfindahl-Hirschman Index of greater than 4000, where 1800 is the estimated highest value before a market exhibits ineffective competition.The revised termination rates apply to Vodacom and MTN for mobile termination and Telkom for fixed termination. The Authority further determines that there is a need for further asymmetry based on:

  • Traffic imbalances reflecting economies of scale

  • to promote investment

  • to encourage competition

  • to foster SMMEs

The level of asymmetry available to licensees offering termination to a mobile location is outlined in the table below:

Table 3: Maximum asymmetric termination rate which a qualifying licensee may charge for termination in Market 1
 Current Termination Rate
R 0.44
01-Mar-14 R 0.39
01-Mar-15 R 0.33
01-Mar-16 R 0.26
01-Mar-17 R 0.20
01-Mar-18 R 0.14
01-Mar-19 R 0.10
01-Mar-16 R 0.10