The Independent Communications Authority of SA (Icasa) met with telecommunications companies on Tuesday to discuss the interconnect rate.

Interconnect rates are the amounts charged by networks for carrying calls on behalf of one another, with SA having exorbitant interconnect fees when compared to most other countries.

"The meeting was necessitated by the ongoing public discussions around the cost of call termination in the country," Icasa said in a statement.

After deliberations, the meeting had resolved to embark on an industry-led process to reduce termination rates, with Icasa exercising an oversight responsibility.

The meeting resolved to ensure that the process of negotiating a new termination rate regime also took into account the requirements of the competition law.

The meeting also decided to conclude negotiations between the operators by the end of December 2009, with Icasa proposing an implementation date of 1 February 2010

"Meanwhile, Icasa will continue with its process in terms of Chapter 10 of the Electronic Communications Act.

"This process will entail the publication of the necessary regulatory framework pursuant to regulations defining the relevant market; evaluating the effectiveness of competition; a declaration of licensees with significant market power and the implementation of pro-competitive remedies."

Vodacom, MTN, Cell C, Telkom, Neotel and the Internet Service Providers Association (ISPA) were present at the meeting, Icasa said.