Cellphone firms in high court tussle

But MTN and Vodacom have objected. They claim that Icasa does not have the power to set prices and that it has not produced an economic case for regulatory intervention.
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Shades of Telkom anyone? Almost. Not quite, but almost.
 
I think in most countries, the cellular operators of SA would be accused (rightly IMO) of being a cartel.
Cellular interconnection fees have risen dramatically - about 600% - in 11 years. These prices are currently set through commercial agreement between operators.
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With interconnection fees rising at this rate and pricing being set by agreements between the cellular operators, ICASA could make a good case for the cellular industry being a cartel.
 
These suits must be getting the feeling that the boardroom walls are closing in on them now :)

Most entertaining to watch them squirm.
 
I've always said that these guys are just as bad as Telkom. They make their own rules and cry like a baby if someone tells them to behave. This seems to be just another SA telecom tantrum.
 
why do companies cry like this when they are clearly extorting money out of their clients and "The regulator" wants to even it out. Also check that return Telkom gets compared to the amount they pay out. what % of they total profit does this represent for a cell phone operator ?
 
krycor said:
why do companies cry like this when they are clearly extorting money out of their clients and "The regulator" wants to even it out. Also check that return Telkom gets compared to the amount they pay out. what % of they total profit does this represent for a cell phone operator ?
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Of course they going to put up a fight. "Innocent until proven guilty".
 
It argues that money received from interconnection can be used to subsidise other services for consumers.
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This kind of statement makes me seethe. It basically says that they are not using it to subsidise at the moment but they can if they want to. It would also be a large barrier to entry for other players entering the market.

Cheers

Abe
 
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stoke said:
Telkom -> Cellphone Operators R6,1bn
Cellphone Operators -> Telkom R1,3bn

That does seem just a teensy weensy bit unfair.
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Would be interesting to know

Telkom <-> Vodacom
Vodacom <-> MTN

etc.

My gutfeel is that any interconnecting charge more than 70% of cheapest intraconnect rate is too high.
 
IanC said:
Not really, it depends on the direction and the amount of traffic passed.
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Agree'd, but suddenly I know why this is happening, teklom is regulated and they cried allover ivy's sleeping shoulder and when she woke up all the leftover tears made some kind of an impression on her and a court case was born.

I want zero effect on my choice of who I call. Expecially with the keep your number for life thing that's imminent, cos I won't be able to pre-determine my call costs.
 
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