Mobile operator Cell C said on Friday that it was in disagreement on proposals from its competitors Vodacom SA (VOD) and MTN on interconnect rates, which it said, offered no significant changes to the current regime.

It follows bilateral negotiations between mobile operators under the regulations of Independent Communications Authority of South Africa (Icasa), which resulted in an agreement being reached between Vodacom SA and MTN.

However, Vodacom and MTN said that they had been unable to reach an agreement with Cell C.

"This agreement proposes a blended interconnection rate of 78 cents which declines to 61 cents on a glide path," Vodacom said on Friday.

"Cell C maintains its position on a once-off reduction of 40 percent in the peak interconnection rate and a flat rate of 75 cents, as this is common practice in 22 of 28 countries in the European Union. This international best practice leads to more competitive pricing and it is only through competition that retail rates will go down," Cell C chief executive Lars Reichelt said.

"In addition, and as supported by the study conducted by the European Union in 2007, mobile termination rate asymmetry is the best way to ensure a levelled playing field and again to increase competition. Cell C is therefore proposing that Vodacom and MTN pay the smaller operators a mobile termination rate of 75 cents per minute whilst the smaller operators, including Cell C, pay Vodacom and MTN a rate of 65 cents," he added.

"Cell C is very willing to enter into dialogue with its competitors, provided that Vodacom and MTN agree and are willing to put forward proposals that will not keep the current status quo," Reichelt said.