Benefits of reduced termination rate finally kick in with lower mobile prices

Mobile termination rate (MTR) reductions by the regulator have finally begun to impact positively on prepaid mobile prices in South Africa. The third termination rate reduction, which came into force in March 2013, has for the first time enabled smaller mobile operators to drive down the prices of dominant operators MTN and Vodacom. Despite these gains the MTR is still far from cost, and the cheapest mobile prices in South Africa lag behind countries where the regulator has enabled com- petitive pricing pressure by enforcing a cost-based MTR.

Read Research ICT Africa’s  policy brief on mobile pricing in South Africa.

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