We’ll reduce prices – Cell C

Cell C CEO says the telecoms company would without a doubt decrease its retail prices should wholesale call termination charges become cheaper.

May 18, 2007
We’ll reduce prices – Cell C

While the Goliaths of the telecommunications world are against the decrease in wholesale call termination fees, Cell C says bring it on.

Both Vodacom and Cell C made their oral presentation today at the Independent Communications Authority of South Africa (Icasa) hearings to discuss wholesale call termination, which refers to the routing of calls from one network operator to another.

It is part of the interconnection between network operators.

Cell C CEO Jeffrey Hedberg said the telecoms company would without a doubt decrease its retail prices should wholesale call termination charges become cheaper.

“Our strategy is to focus on the lower to middle income segment. Affordability and accessibility is very important. We’ve already reduced the Cell C to Cell C charges because we have that control,” he said.

Hedberg said that Cell C supports Icasa’s proposed asymmetric treatment of operators based on their significant market power (SMP) in the call termination market, coupled with their ability to harm competition.

“We believe that the implementation of a cost based interconnection regime for operators with SMP in the relevant market will lead to lower prices and increased competition,” he said.

He said smaller operators had to be protected at a retail level through ex ante (anticipated changes in the economy) regulation of large operators’ price differentials. This should be done so that regulatory intervention to promote competition in the call termination market does not have unintended or negative impact on the promotion of competition.

Vodacom on the other hand argued similar points to what MTN had argued the day before.

Pakamile Pongwana from Vodacom said that the overall South African mobile market was built on the balance and interrelationship between wholesale and retail charges.

And that by lowering the wholesale price, you could effectively be closing the door on the lower income or no income earners’ access to mobile connection as the revenue from wholesale call termination is used to subsidise them.

Comments

Anonymous News Tip
Free Email Newsletter:
Subscribe
X

Anonymous News Tip






Captcha image
Not readable? Change text.

sending

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Are you using public WiFi hotspots to connect to the Internet in places like airports, restaurants or shopping malls?

View Results

Loading ... Loading ...

More News

Top tech deals this Easter

Sale

Many local retailers are offering technology products at reduced prices over the Easter period

First online pirate in SA pleads guilty, sentenced

Music pirate piracy

Majedien Norton, the Cape Flats man who was accused of uploading SA film Four Corners via Pirate Bay, has pleaded guilty to the charge

DStv Oscar Pistorius Trial Channel to take a break

Oscar Pistorius is seen during his murder trial at the North Gauteng High Court on Tuesday, 11 March 2014.Pistorius is accused of the murder of model and law graduate Reeva Steenkamp on February 14 last year. She was shot in the arm, hip and head. He is also charged with illegal possession of a firearm and ammunition, and two counts of discharging a firearm in public. Picture: Kevin Sutherland/Times Media Group/Pool

The Oscar Pistorius Trial Channel will take a break for two weeks

MTN strikes at the heart of Cell C

Cell C stab

MTN’s recent move to cut prepaid call rates to 79c per minute strikes at the heart of Cell C’s ability to improve its financial situation

bool(true)