The cost of communication in South Africa will go under the microscope as the Independent Communications Authority of South Africa (Icasa) embarks on an ambitious programme to identify and resolve the core challenges and barriers to lower communication costs to industry and the end-user.

Icasa, which previously faced criticism for its lack of efficient action within the information and communication technology (ICT) indus- try, revealed the Cost to Communicate pro-gramme to media and industry earlier this month.

Icasa GM for markets and competition Pieter Grootes explained that, despite reduced mobile termination rates (MTRs), the cost of communication in South Africa was still high and competition remained fragmented.

South Africa had been ranked 117th out of 140 countries in terms of mobile tariffs. Of the 34 African countries surveyed, the nation was placed 30th, with an average call cost per minute of $0.51, ahead of only Malawi, Chad, the Seychelles and Lesotho. South Africa awas ranked 9th, compared with 12 Southern African Development Community countries.

The fast-tracked programme included under- taking a broadband value-chain study and a call termination market review, finalising the long-awaited local-loop unbundling (LLU) regulations, collecting and analysing ICT indicators, and establishing a wholesale trans- mission services digital terrestrial television (DTT) rate card.

“We need to identify issues and resolve them so that [operators] have a fair chance [at operating competitively in industry],” he explained.

Grootes warned industry participants to be prepared to part with information, as the regulator would publish several requests for information (RFIs) in its quest to unpack the challenges and formulate solutions.

The authority would re-examine the much-contested MTRs, following the conclusion of a successful three-year glide path in March.

Icasa’s 2010 Wholesale Voice Call Termination Regulations had systemically shrunk over the years, declining 68% to the current 40c a minute, from an initial termination rate of R1.25 a minute in 2009.

Icasa previously stated that it believed that the MTRs should be further reduced to between 15c and 25c, and eventually eliminated altogether; however, a market review would examine the viability of this idea.

Grootes commented that should Icasa decide to move forward with further cuts, the communications regulator would establish a cost base for call termination and introduce another regulated glide path to reach this base.

Icasa was expected to have issued an RFI last week and, following one-on-one engagements with licensees and public hearings, a new glide path could be published on October 25.

Meanwhile, the broadband value-chain study, which would evaluate all the cost elements, identify the significant market power and consider potential facilities and wholesale services, would allow the authority to effec- tively regulate broadband prices where necessary.

The open window for industry to submit RFIs for the study would be June 14 to July 15, and would culminate in final regulations by April 2014.

Further, to ensure the much-delayed LLU was fast-tracked and the regulations published by March 2014, Icasa was working towards ensuring implementation of the open-access principles outlined in the Electronic Communi- cation Act (ECA), as well as the fulfilment of the ECA Chapter 8, enabling effective and efficient use of local loop infrastructure.

The regulations governing LLU, which would give Telkom’s rivals access to its ‘last mile’ of copper-cable infrastructure at a wholesale price, were initially expected to be finalised by November 2011.

However, Christian Mahlangu, who was appointed to lead the programme, assured industry that the work had been done and consultations had been completed, indicating that there would be no delays this time.

The draft regulations would be published for final public comment on July 16, followed by public hearings in October.

Meanwhile, in efforts to ensure that digital terrestrial broadcasting was affordable and that public broadcaster South African Broad- casting Corporation and free-to-air broad- caster e.tv faced cost-orientated prices, the regulator published the Broadcasting Wholesale Transmission Services Findings document last week.

Icasa aimed to publish draft regulations for public comment by December and initiate public hearings in March next year.

The final DTT regulations would be published by May 2014.