Call termination rates: the floor under every call price
Every cross-network call in South Africa carries a wholesale fee set by ICASA. It has fallen from R1.25 a minute to 5c, and it explains why calls to mobiles still cost your business more than anything else on the rate card.
What are call termination rates in South Africa?
Termination rates are the ICASA-regulated wholesale fees one network pays another to deliver a call. Since 1 July 2026 they sit at 5c per minute for mobile and 4c for fixed calls, excluding VAT, and drop to 4c and 1c on 1 July 2027. They set the minimum cost of every cross-network call you make.
What a termination rate actually is
When you call someone on another network, your provider pays their provider to complete the call. That fee is the termination rate, and it is the raw material cost of every call price you see.
Two flavours exist. The mobile termination rate (MTR) is what a network pays to land a call on Vodacom, MTN, Cell C or Telkom Mobile. The fixed termination rate (FTR) is the equivalent for landing a call on a fixed or VoIP network. Both are capped by ICASA under the Electronic Communications Act, because a network holds a monopoly on reaching its own subscribers and would otherwise charge whatever it liked. That is not a theoretical risk; it is exactly what the market looked like before regulation.
The fee is invisible on your invoice, but it is the floor under the retail price. A provider can absorb its own network costs and trim its margin, yet it can never sell a cross-network call below what it pays the other side to terminate it. When ICASA cuts the rate, the floor drops for every provider at once. A separate Bill now before Parliament aims at the wholesale layer above that: what the ECA Amendment Bill means for business phone and data costs.
Where the termination fee sits in a call
Sixteen years of rate cuts, in one timeline
South Africa’s termination rate has fallen roughly 97% since 2010. The glide path was slow and repeatedly contested in court, but the direction never changed.
Mobile interconnect peaks at R1.25 per minute. ICASA publishes its first Call Termination Regulations and the glide path era begins.
The rate reaches 40c. Calls between networks are still priced like a luxury, and small operators lean on asymmetry to compete.
New regulations cut the MTR to 20c with an asymmetry cap of 31c for smaller operators. MTN and Vodacom challenge the rules in the High Court and win on process, forcing ICASA to redo the work.
The 2018 amendment’s last step lands: 9c mobile (13c for small operators) and 6c fixed. These rates then hold for almost five years while ICASA runs its next review.
The final Call Termination Amendment Regulations are gazetted, softer than the March 2024 draft but locking in a three-year glide path to 2027.
First cut: mobile drops to 7c (9c for small operators and new entrants), fixed to 5c.
Where we are now: 5c mobile and 4c fixed for everyone except new entrants. Asymmetry for Cell C and Telkom ends after more than a decade.
The final step: 4c mobile and 1c fixed. No further review has been announced.
The 2024 final amendments: the rates now in force
ICASA’s December 2024 gazette replaced the aggressive March 2024 draft with a slower, deeper glide path. These are the numbers that matter until mid-2027.
The draft had proposed slashing mobile to 4c and fixed to 1c by July 2025, within roughly 15 months. After public hearings in June 2024 and heavy pushback from operators, the final regulations spread the same destination over three years. The first cut only took effect on 1 July 2025, a full year later than the draft envisaged. All rates below are cents per minute, excluding VAT.
| Effective date | Mobile termination | Fixed termination |
|---|---|---|
| Until 30 Jun 2025 | 9c large · 13c small | 6c |
| From 1 Jul 2025 | 7c large · 9c small | 5c |
| From 1 Jul 2026 (now) | 5c, all operators | 4c, all operators |
| From 1 Jul 2027 | 4c | 1c |
The end of asymmetry, except for genuine newcomers
For over a decade, “small” operators (in practice Cell C and Telkom’s mobile arm) were allowed to charge rivals more for terminating calls than they paid in return. It was a deliberate subsidy to help them compete with Vodacom and MTN. The 2024 regulations killed it: small-operator rates converged with the large operators’ 5c on 1 July 2026, and asymmetry now exists only for true new entrants, defined as licensees with under three years in the market.
The average cost of terminating a fixed call is now the same, if not more expensive, than terminating a mobile call.
Sasha Booth-Beharilal, ISPA chair, arguing for fixed–mobile rate parity, April 2024What ISPA and the smaller operators argued
Not everyone cheered the cuts. The sharpest objections came from the fixed and VoIP side of the industry, and they are worth understanding because they shape what happens after 2027.
ISPA, the internet industry’s official representative body, called the fixed-line cuts too aggressive. Its members pointed out that a 1c FTR is extraordinarily low by world standards; Switch Telecom noted that Europe’s fixed termination rate runs about 40% higher than what ICASA proposed, in markets that are denser and cheaper to serve than South Africa. ISPA’s core argument was for parity: with fixed–mobile substitution accelerating, there is no longer a good cost reason for mobile termination to sit at four times the fixed rate, as it will from July 2027.
On the mobile side, Cell C CEO Jorge Mendes warned that cutting rates while removing asymmetry would “disproportionately benefit dominant players”. Telkom made a similar case and argued ICASA’s cost model punished operators for their historical infrastructure investments. ICASA proceeded anyway, betting that a level, low-rate playing field beats a subsidised one. Whether the challengers can still fund network competition at 4c a minute is the open question the next review will inherit.
What this means for your phone bill
Termination rates explain the shape of every South African rate card: cheap on-net, moderate national, expensive mobile. Once you see the floor, you can judge the markup.
Take Switch Telecom’s published rates as a worked example. On its Package 1, an on-net call costs R0.13 per minute, a national call R0.24 and a call to a mobile R0.43, all excluding VAT, billed in 30-second increments after a 60-second minimum. Package 2 charges R0.15, R0.26 and R0.52 with per-second billing from the first second. The pattern is the termination regime made visible: no wholesale fee on-net, a small fixed fee on national calls, and the mobile termination fee plus radio network costs on the expensive leg.
Those Switch rates have been in place since April 2018, when mobile termination cost 13c. The wholesale floor has since fallen to 5c, and it hits 4c next July. That gap is your negotiating room. Some providers pass cuts through quickly, others quietly bank them, so the question “when did you last reprice your mobile rate?” belongs in every procurement conversation.
How to read a provider’s rate card
Our verdict
The termination regime has done its job: a 97% cut since 2010 is why VoIP calling in South Africa is cheap and getting cheaper. The rates in force today (5c mobile, 4c fixed) are locked until 1 July 2027, when they fall to 4c and 1c, and no new ICASA review is on the table. The honest caveat is that wholesale cuts reach retail slowly and unevenly. ICASA drops the floor; whether your bill follows depends entirely on your provider, and some rate cards still reflect the 13c era.
Pay the new floor, not the old one
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Frequently asked questions
What is a call termination rate?
What are the current call termination rates in South Africa?
Why do calls to mobile numbers cost more than calls to landlines?
Do lower termination rates automatically make my calls cheaper?
What happened to the higher rates Cell C and Telkom could charge?
Are VoIP-to-VoIP calls really free?
Will termination rates drop again after 2027?
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Sources: ICASA Call Termination Amendment Regulations (gazetted 11 December 2024) and ICASA Call Termination Rate Review; ITWeb; Engineering News; MyBroadband; TechCentral; ISPA press statement via ITWeb (April 2024); Saicom interconnect rate history; switchtel.co.za published call rates. Verified 18 August 2026.