Vital talks about the slashing of cellular interconnect fees have reportedly broken down.

The Communications Ministry has ordered the Independent Communications Authority of South Africa to put policies in place which will force the cuts by the end of next month.

Vodacom and MTN say they need more time, while Cell C says it wants to pay a lower rate than the two larger companies.

The two cellular giants are calling for gradual reductions, saying a sudden loss of interconnect revenue will damage current business models but Cell C is calling for an across-the-board 40 percent reduction in addition to its request to pay less than its two larger counterparts.

Vodacom and MTN have opposed Cell C's suggestion but South Africa's smallest operator is refusing to back down.

On Friday, Icasa-mediated talks reportedly broke down because Vodacom and MTN are refusing to negotiate any further until Cell C softens its stance.

The interconnection fee is what the networks pay each other to connect their users to people on other networks.

Eyewitness News