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

Regulations

Call Termination Regulations, 2014

7. Pro-competitive terms and conditions

 

(1) The Authority has determined that the following market failures may recur in the absence of regulation:
(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) In order to address the market failures identified in sub-regulation (1) above, an ECNS and ECS licensee must charge fair and reasonable prices for wholesale voice call termination consistent with Annexure A.

 

(3) In addition to sub -regulation (2), the Authority has determined that additional pro-competitive terms and conditions are necessary to correct the market failures identified in sub -regulation (1), which are to be imposed on the following types of licensees:
(a) A licensee that benefits from economies of scale and scope with a share of total minutes terminated in the wholesale voice call termination markets with more than 20% (twenty percent) of total minutes terminated to a mobile location as of 31st December 2023.
(b) A licensee that benefited from economies of scale and scope with a share of total minutes terminated in the wholesale voice call termination markets with more than 20% (twenty percent) of total minutes terminated to a fixed location as at 31St December 2023.

 

(4) The Authority has determined that the following licensees have the characteristics mentioned in sub -regulation (3):
(a) Mobile termination markets:
(i) MTN (Pty) Ltd ("MTN"); and
(ii) Vodacom (Pty) Ltd ("Vodacom").
(b) Fixed termination markets:
(i) Telkom SA SOC Limited ("Telkom").

 

(5) All licensees referred to in sub -regulation (4), must comply with the following additional pro- competitive terms and conditions:
(a) Publication of a Reference Interconnection Offer ("RIO"):
(i) Licensees identified in sub -regulation (4) must submit a RIO to the Authority for approval within 45 (forty -five) days from the date of commencement of these Regulations.
(ii) The RIO must comply with the requirements set out in Annexure B below.
(iii) The Authority will assess a RIO submitted by a licensee within 30 (thirty) days of its submission.
(iv) Licensees identified in sub -regulation (4) are obliged to offer interconnection using IP -based protocols.
(v) Provided that all requirements in the RIO are met by both an interconnection seeker and provider, a request for interconnection based on the RIO must be concluded within thirty 30 (thirty) days of such a request for interconnection, unless otherwise agreed between the licensees.
(vi) A licensee identified in sub -regulation (4) must publish the approved version of its RIO on its website within 5 (five) days of receiving notice of approval from the Authority.
(b) Price Control: Cost-based pricing:
(i) A licensee identified in sub-regulation (4) must charge wholesale voice call termination rates to a mobile or fixed location as specified in Table 1.

 

Table 1: Termination Rates:

Maximum call termination rate for Large Operators

Termination rate to a mobile location

Termination rate to a fixed location

1 July 2025

R0.07

R0.05

1 July 2026

R0.05

R0.04

1 July 2027

R0.04

R0.01

 

Table2: Termination Rates for New Entrants:

Maximum call termination rate for Large Operators

Termination rate to a mobile location

Termination rate to a fixed location

1 July 2025

R0.09

R0.06

1 July 2026

R0.07

R0.05

1 July 2027

R0.05

R0.02

 

(6) New entrants will qualify for asymmetry for a limited period of 3 (three) years after entry into the market.

 

[Regulation 7 substituted by regulation 3 of Notice R5646, GG51718, dated 9 December 2024 - effective 1 July 2025]