Deputy Speaker, the ACDP would like to congratulate the hon Minister on successfully facilitating the agreement to reduce mobile termination rates. The cellphone industry leaders appeared unlikely to reduce rates unless there was significant regulatory or political pressure. So, we are impressed.
The Department of Communications studied the benchmark South African communication costs against our peer countries, comparing us to Brazil, Chile, Korea, India and Malaysia, and found that our country has exceptionally high telecommunication prices, relative to our peer group countries, and that we had the least competitive market.
Interconnection rates were designed to help the mobile operators bill their networks when they launched; and these are not necessary now. Industry commentators said the evidence was overwhelming that there was little justification for pushing the fee up in the first place. They have estimated that a fee of R0,10 to R0,25 would now be more than adequate to cover the costs.
We are looking forward to your ongoing success in the interest of the people of South Africa and future development. I thank you. [Applause.]