Challenge to ICASA by MTN and Vodacom

Project name:
Challenge to ICASA MTR decision by MTN/Vodacom

Service:
Regulatory economics and accounting

Sector:
Communications and Media

Client:
Independent Communications Authority of South Africa (ICASA)

Date:
2015

Country:
South Africa


Genesis was commissioned by ICASA to assist in defending its mobile termination rates decision of March 2014 following a legal challenge to the proposed glide path by Vodacom and MTN. The project team played a critical role in the proceedings by demonstrating that the initial drop in termination rates for the larger operators was still above their costs. This allowed the court to suspend the order overturning the regulations for six months while ICASA undertook a more thorough investigation process.

The expert report presented by Genesis was based on a simplified LRIC costing model developed in a very short time using historic regulatory accounts for the operators and updated information based on public sources. The Genesis project team also assisted the legal team in compiling responses to issues of an economic nature in the pleadings. The result of the suspension of the court order was that termination rates dropped for the larger operators, sparking a price war that significantly benefitted consumers.

Financial model sets new mobile termination rates

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