call termination regulations

In an accompanying media release, ICASA summarises its findings:

1. The definitions of Mobile termination markets and Fixed termination markets in terms of regulation 3 of the 2014 Call Termination Regulations remain unchanged with the exception of the exclusion of termination of internationally originated voice calls.
2. Competition in the relevant markets still remain ineffective.
3. Each individual Electronic Communications Network Service licensee and Electronic Communications Service licensee that offers wholesale voice call termination services continue to have Significant Market Power in its own network for wholesale voice call termination.
4. The four market failures as per regulation 7(1) of the 2014 Call Termination Regulations may exist in the absence of regulation.
5. The pro-competitive conditions imposed on licensees in 2014 are still relevant.

ICASA then notes that it has “received requests to extend the current glide path validity period owing to concerns regarding the time required to conduct cost study in order to determine new termination rates for the next three years.  ICASA has reviewed these requests and published the amendment to the Call Termination Regulations, 2014 in terms of sections 4(7)(b) and 67(8) of the ECA to extend the current glide path for a further 12 months.”

ICASA will publish a briefing note on its website by no later than 30 September 2017 outlining the consultative approach and timeliness to determine new termination rates.

Queries should be directed to the Chairperson of the Call Termination Council Committee at CTRreview@icasa.org.za.

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[10 June 2017] ICASA has published a notice and Discussion Document setting out its analysis of pro-competitive conditions imposed on licensees in terms of the Call Termination Regulations 2014, based on the review of those conditions as detailed in the posts below.

Link to the discussion document.

ICASA has concluded that:

• the definitions of Mobile termination markets and Fixed termination markets in terms of regulation 3 of the 2014 Call Termination Regulations remain unchanged.
• competition in Mobile termination markets and Fixed termination markets still remain ineffective.
• each individual Electronic Communications Network Service and Electronic Communications licensee that offers wholesale voice call termination services continue to have Significant Market Power as defined in section 67(5) of the ECA in respect of access to their own networks.
• the four market failures as per regulation 7(1) of the 2014 Call Termination Regulations continue to exist.
• the pro-competitive conditions imposed on licensees in 2014 are still relevant.

Interested parties have 21 days from publication on 9 June 2017 to submit comments on the analysis and Discussion Document. Submissions can be sent tot ctrreview@icasa.org.za marked for the attention of the Chairperson: Call Termination Committee.

Based on responses received, ICASA will then determine whether public hearings are required before publishing a Findings Document.

The end of this process should be a determination of a new termination rate regime by no later than 30 September 2017.

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[1 March 2017] ICASA have published a media statement in respect of the initial process to review the pro-competitive conditions imposed on licensees in terms of the Call Termination Regulations, in response to queries received about this process and related matters.

ICASA has extended the deadline for submission of responses to the 2016 Call Termination Market Info Questionnaire to 24 March 2017.

A briefing session to clarify queries relating to the process to be undertaken will be held at ICASA Head Office on 24 March 2017 from 10h00 to 13h00.

Briefing note – Questionnaire

Media release

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[10 February 2017] The request for information for the review  has been gazetted and can be found below.

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

[30 January 2017] ICASA has given notice of its intention to commence with a review of the pro-competitive terms and conditions imposed on licensees in respect of rates charged for the termination of voice calls.

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

The first step in the review is for licensees to complete and submit a questionnaire by no later than 16h00 on 28 February 2017. Completed questionnaires should be sent to ctrreview@icasa.org.za.

2016 Call Termination Market Info Questionnaire

Licensees have until 16h00 on 13 February 2017 to submit any queries regarding the questionnaire to ICASA. ICASA will thereafter publish a consolidated response to all queries received in FAQ format on its website.

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[21 March 2016] Housekeeping. Cell C has given notice of its withdrawal of its application for review of the Call Termination Regulations 2014 with particular reference to the mobile termination rates and allowable asymmetry [see entry from 18 December 2014 below].

The current termination rate regime has specified maximum fixed and mobile call termination rates up the end of September 2017. With ICASA due to start a new process in the next few months it is plausible that the withdrawal is simply recognition of the delays in litigating which have made any potential remedy worthless.

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[30 March 2015] ICASA has published a reasons document setting out the reasons for the position it adopted in the Call Termination Regulations 2014.

CTRs 2014 Reasons Document 25 March 2015

[23 March 2015] ICASA has issued a press release detailing its findings and determinations in respect of a complaint laid with it by the Internet Service Providers’ Association (“ISPA”) against MTN (Pty) Ltd (“MTN”) relating to MTN introducing a different rate for the termination of internationally-originated calls as opposed to the the termination of locally-originated calls.

ISPA v MTN Media Statement International Interconnect

ISPA’s complaint was lodged after some of its members received a notification from MTN on 22 October 2014 in the following terms:

“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.

ICASA directed MTN to immediately cease collection of the USD0.25 from local interconnecting partners and to comply with the charging regime contained in the Call Termination Regulations, 2014, as reflected in the 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.

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[18 December 2014] In a nod to the critical role of termination rates to their sustainability, Cell C have given notice of their intention to seek a review of the Call Termination Regulations 2014 with particular reference to the mobile termination rates and allowable asymmetry set out in the 2014 Regulations. To this end Cell C has made a detailed request for information from ICASA which was used in  the making of their decision to set the current glide path and asymmetry levels for the mobile termination market.

Notice of Motion_ Cell C application for review

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[30 September 2014] ICASA has published final Call Termination Regulations 2014. The provisions and rates set out in these Regulations are effective as of 1 October 2014.

Call Termination Regulations 2014

The rates differ substantially from those set out in the draft linked to immediately below. While an explanatory document will be published in due course, we understand that this was as a result of errors made by ICASA in the modelling undertaken to establish the rates and the degree of asymmetry…

Fixed call termination rates: