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MTN - MTN Group Limited - MTN SA update on interconnection discussions
MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration Number 1994/009584/06
Share code: MTN
ISIN: ZAE000042164
("MTN")
MTN SA update on interconnection discussions
MTN South Africa (SA) is in ongoing discussions regarding interconnection rates
and in this regard the following press release was issued by MTN SA on Friday,
late afternoon.
"MTN SA can confirm that an agreement has been reached with Vodacom, and is
pursuing bilateral negotiations with Cell C and other operators.
The two parties reached an agreement based on the parameters set in earlier
negotiations, which have been underway for some time. However, it is with regret
that no agreement has been reached with Cell C at this stage.
These bilateral negotiations take place in terms of the regulations by the
Independent Communications Authority of South Africa (ICASA), which has
oversight over the process.
In terms of the agreement, the parties proposed approximately 19% immediate
reduction of the blended wholesale interconnect tariffs, with further reductions
year-on-year for the following three years.
This reduction cycle will enable MTN SA to make the necessary changes to its
operations and long-term commitments to reflect the decrease in interconnect
rates.
In terms of due process, the two parties will now need to lodge the agreement
with ICASA for their regulatory oversight. MTN SA is pleased that progress has
been made in the negotiations, and will continue to engage in good faith with
other parties as part of the ICASA process to resolve outstanding interconnect
agreements.
MTN SA believes that the agreement reached with Vodacom will have the effect of
lowering mobile termination rates without impacting too heavily on jobs,
investment, access and penetration."
Fairland
26 October 2009
Sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 26/10/2009 09:24:56 Produced by the JSE SENS Department.
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