MPs get grumpy about call charges

MPs yesterday demanded to be told what the regulator Icasa was doing about cellphone call charges, which, despite adjustments, are still high.

The deputy director-general of communications, Themba Phiri, told the National Council of Provinces' select committee on labour and public enterprises that the introduction of cellphone number "porting" had done little to decrease the cost of cellphone calls.

In May former communications minister Dina Pule said in her budget speech that she wanted more transparency from cellphone network operators about the costs of calls, texting and data transfers.

Phiri said that, despite the licensing of two other cellphone networks, Vodacom and MTN still controlled more than 91% of South Africa's cellphone market with little tariff variation between the two.

"The pricing information is also presented in a way [that's too] complex for the consumer to understand so that they can make quality decisions on who is giving them a good price," Phiri told the committee.

He said competition could be "accelerated" by infrastructure sharing but this was being hampered by "uncompetitive behaviour" of the dominant operators.

Earlier this year a survey by Africa ICT, a research firm, ranked South Africa 30th among 47 African countries for the least expensive prepaid cellphone calling costs.

Phiri said there was room to reduce the 40c charge for call termination among cellphone networks.

"We think a lot more can be done. We can compare to other countries in Africa where our own operators are operating and offering far cheaper [call] rates than they're offering in South Africa."