MTN remains committed to affordable mobile costs for consumers

Mobile network operator MTN notes that ICASA launched a "Cost to Communicate Programme" on 7 June 2013. According to ICASA, the goal of the programme is to stimulate public debate around the cost to communicate in South Africa. The programme will include a regulatory broadband value chain study, the creation and collection of ICT indicators for an ICASA database, local loop unbundling regulations, as well as a review of wholesale services and a review of the existing call termination regulations.

MTN welcomes and supports the ICASA regulatory programme and will fully participate in a programme that will stimulate debate and interrogate the cost to communicate in South Africa on a factual basis. MTN was particularly pleased that ICASA stated its approach would be evidence-based and not opinion-based.

MTN has responded to a letter received from the Right2Know campaign and confirmed that it had extended an invitation to the Right2Know campaign to engage in constructive dialogue regarding the demands the campaign raised in its letter, dated 3 May.

The Right2Know campaign demanded that all SMSes must be able to be sent free of charge. Robert Madzonga, MTN's Chief Corporate Services Officer, emphasised that the implementation of a zero rate on any product or service that costs money to produce may be seen as expropriation, which is potentially tantamount to an offence as defined under the Competition Act.

"In addition, MTN has introduced products that further reduce the cost of communication for our customers. MTN introduced MTN Zone and in 2012, MTN introduced the Mahala Thursdays offering, which has been a phenomenal success," said Madzonga.

MTN's PayAsYouGo and TopUp customers have now been rewarded with the Mahala 50% Mahala Airtime promotion, available until the end of August, which supports cheaper calls, SMSes and Internet access.

The Right2Know campaign demands that MTN invest in the network maintenance and development. MTN is investing in its networks on a day to day basis. A very cursory view of our annual financial reports would make it clear that MTN invests more than R4 billion to R6 billion annually on network expansion and modernisation, with the goal of universal access across South Africa.

Over the last four years, MTN's capital expenditure on the network and billing systems were in the region of R20.4 billion. The company offers 99% population coverage, including rural and peri-urban areas throughout South Africa, a country of over 1.2 million km2.

MTN has complied with legitimate information requests from ICASA and the Department of Communications. This information is submitted on a confidential basis as circumstances require.

"While MTN values transparency, as a business, the company also has the fiduciary responsibility to protect information that is confidential and key to its competitiveness," said Madzonga.

"MTN recognises that the highest ethical standards and governance are necessary in order to maintain our business continuity and sustainability. We have established a social and ethics committee to review and embed ethical values within the company, in line with international trends and our commitment to sound governance," he concluded.