THE SMART NEWS SOURCE | Feb 09 2010 21:54 | LAST UPDATED Feb 09 2010 21:54 |
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MPs on Tuesday urged the Independent Communications Authority of South Africa (Icasa) to act speedily to reduce the cost of cellphone call charges in South Africa. During a National Assembly communications committee meeting, the African National Congress's Johnny de Lange called for Icasa to use its powers to set a concrete timetable for this. He also proposed that the cellphone industry appear before the committee -- possibly in October -- to explain the problems it faced, the costs it charged, and to account for the profits made. It seemed that the industry had a "friendly regulator" in Icasa, which was not they way it was supposed to be, he said. The industry was doing "terrible things" to the people of South Africa because of their high charges. Every minute's delay in action by Icasa allowed the industry to continue to make exorbitant profits. He urged Icasa, as the independent regulator, to make decisions speedily. Committee chairperson Ismail Vavi said the charges were "excessive, exorbitant and exceptionally high", and had to be reassessed urgently. A critical junction had been reached and Icasa had to make urgent decisions to end this intolerable situation. De Lange's ANC colleague, Eric Kolwane, criticised Icasa for allowing the industry to "negotiate among themselves". The outcome of negotiations for lower charges could not be determined by the industry alone. Icasa had to take the shortest route possible to reduce charges and this had to be done by December at the latest, Kolwane said. The Independent Democrats's Patricia de Lille also wanted Icasa to act immediately to reduce charges and the "obscene profits" being made by the industry. South Africa's cellphone rates were among the highest in the world. The reason for the delay in reducing charges was because operators wanted to "rake in the millions" to be made over the festive season, she said. Earlier, Icasa councillors, led by chairperson Paris Mashile, told the committee the authority was concerned about the high cost of cellphone communications. However, it was a negotiated process that took time. Out of the nine Icasa councillors, four were focusing on this issue. Icasa councillor Thabo Makhakhe said the authority had released regulations in mid-2008, but the industry raised substantial concerns about the process followed. Icasa needed to gather more information before it could impose effective regulations, he said. This included sending questionnaires to operators by the end of this month, evaluating the responses and designing proportionate pro-competitive remedies. The third step would be to draft regulations imposing these remedies by February/March next year. In addition, Icasa had adopted a "moral suasion" approach with the industry to negotiate reduced charges. Icasa had met with Telkom, Neotel, Vodacom, MTN, Cell C, and the representative body of all other operators, ISPA, earlier this month, and an industry-led voluntary negotiation process to reduce charges had been formed. The next meeting was scheduled for October 9, he said. Mashile said it was hoped the industry would present its proposals by December. Makhakhe said Icasa was fully aware of the need to reduce rates, but this had to be done according to "due process". The Icasa councillors voiced concern that if this was not done, the industry would try to delay matters through lengthy court action, which Icasa wanted to avoid. However, MPs from all sides of the House were unanimous that further delays were unacceptable and urgent action on Icasa's part was now necessary. -- Sapa TOPICS IN THIS ARTICLE
Comments
It's about bloody time! We're at the mercy of the big corporations if we don't get help from the government. Look at the exorbitant charges from banks. People who have never seen what the costs are of these services elsewhere in the world would think it's normal, but it's an absolute disgrace! What is the alternative - put our money under our beds and not use a cell phone in the competitive business environment in the modern world? The media should do an expose on these criminals who run these companies. The majority of South Africans are already poor, and now they want to milk the last drops of money out of them. I say let their heads roll!
Johan Pieterse on September 15, 2009, 4:11 pm
I fully endorse what Johan has said above. When will South Africans wake up to the reality of being exploited unscrupulously by these darn capitalist pigs? And I'll bet there are many among them who go to church every Sunday, too. Ulrich Beck has urged people/consumers worldwide to use the power they have to bring down unconscionable prices, namely, their power NOT to buy. I only rarely use my mobile phone, and then only for sms's, and only VERY rarely for phoning, when it is an absolute emergency. When cell phone companies phone me to try and sell me a contract, I tell them that their fees are obscene, compared to many other countries - even in the US, the haven of capitalism, mobile phone calls are cheaper than landline calls. Until when will these exploiters be allowed to grow filthy rich from a gullible public? And when will the public stop being so gullible and accepting of exploitative company behaviour? The managing directors of these companise should be charged with criminal behaviour. Are South Africans even aware that we have now replaced Brazil as the most UNEQUAL society in the world? What an infamy! I applaud Patricia De Lille for her stance on this matter - ICASA, get your backside into gear!
Bert Olivier on September 15, 2009, 5:28 pm
I agree that the cell phone charges should be reduce now.All this companies are doing billions at our expense,they milk as much as they could is time to give us good service and prices that everyone can afford.I say this should be done in the next month,what is the problem of reducing prices?The price should be in relation as other countries like India,they have a good price and the companies are still making money.
Other services that must reduce prices are banks,they are making mega bucks with the little money we can save and are charging to much for their services. DSTV is another that is very expensive,we need lower prices and better programs,it would be good if they will get some competition.
olga wueen on September 15, 2009, 5:38 pm
can the MPs now pass a resolution to cut excessive spending by government ministers on cars and six star hotels. For heavens sake, why would someone need a car allowance when they earn R1.8 M a year??? and why would someone hold a conference in a six star hotels when there is goverment departments buildings????
The ANC must go...come 2011, I am going to negatively infleunce people to vote against corruption. I may not know many people, but twenty votes is a lot!!!
Kuas M on September 15, 2009, 5:49 pm
I agree that phone cost must come down. It must the cynical in me, but why are the government only doing something about it now? Could it be that they have sold vodacom (through telkom) off so it's not them making the profits anymore? And why aren't they as vocal about telkom's huge rip off and exorbitant prices????And why not go after the banks and their huge pricing? Could it be that they earn vat on every transaction that we are charged for? Bloody bunch of hypocrates. Not one bit intersted in joe public. Only go after private business to "look" good.
Tiger Lily on September 15, 2009, 6:24 pm
KuasM, for once can you please stop of been obvoius and applaude the govt for what they have done with celphone rates, instead of been irrelavant as always and hammer the Anc evreytime you got a chance,you can never see somting good in the ruling party ne, news flash ''sweet hurts'' it giong to take forver for the Anc to be out of the govt , cause there is no alternative Party that is fit to rule this country, maybe after the year 2099...
zach chauke on October 12, 2009, 12:34 pm
At last something foer the people of Mzanzi.I have always asked nyself how posible is it that the country can be charged this much for the poor service provided by this cellphone companies,i have ported my number from MTN to Vodacom thinking maybe the service is better but boy was I only fooling myself.
This was the worsed move I ever made in my life.Service and Vodacom are like north and south,then comes the banks that are milking the poor South African of the last life wire in our bodies
Etienne mokwana on October 27, 2009, 7:17 am
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