Maybe someone could explain why reducing MTR would lead to a drop in mobile rates in the first place?
Firstly, it only affects off-net calling.
Secondly, for the larger operators, paying and RECEIVING less MTR basically balances out. So where are the cost reductions that's supposed to be passed to the end user?
Thirdly, if you're a net receiver of MTR, your nett profit decreased. But somehow you should address this by decreasing rates as well? Try that one on the bean-counters and shareholders.
I'm not saying the current rates are right. But clearly reduction in MTR is not automatically going to result in reduced rates.
We have a big problem in South Africa with these so-called "industry experts" and "analysts". Many of them come with no relevant experience but are quick to make wild predictions. The latest unrealistic hype being created is that LLU will drive down ADSL costs.
They create all the hype and when it does not come to pass, trying to stay relevant, they're the first ones to state it was not reasonable to expect it in the first place, forgetting to admit the hype was their own creation!
People read their comments, believing the author actually knows what he is talking about and soon everyone quotes it as fact. Of course, when the reality hits, everyone cries foul.
In a similar vein, when a CEO of a small struggling VoIP provider becomes zealous about a topic and shouts it from the rooftops at every possible broadband seminar, one should carefully think why. For sure it's not about truly caring for the consumer as they always make out. Rather it's how much they care to stay in business.
