South African telecoms watchdog, the Independent Communications Authority of South Africa (ICASA), has adopted Long-Run Incremental Cost Plus (LRIC+) methodology for bottom-up and top-down cost-oriented mobile and fixed wholesale voice call termination rates. The authority has disclosed that the introduction of the LRIC+ model will allow operators to recover a portion of the joint and common costs incurred in the provision of wholesale voice call termination service through the termination rates themselves, which will in turn ensure continued investment in the country’s telecoms networks. Further, the LRIC+ methodology will correct imbalances created by call termination regulations adopted in 2010, under which different cost standards applied to different markets.
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