Cell C profits from CSTs

Haha, another company out to make LOTS of money anyway it can eh? 6c VS 90c :(
 
well they not here to make friends but money, maybe they had some lessons from telkom on milking the cash cow.
 
The controversy around CSTs stems from the interconnection fee - the money the operators pay one another to terminate calls on their networks. The normal interconnection fee is R1,25/minute but for CSTs a mere 6c/minute is charged to Cell C, which goes on to charge the public 90c/minute.
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So Cell C is making a massive profit on this service, whoppee, whats new in SA telecoms.

A question though for the guru's, R1.25 vs R0.06,, is that only for Cell C or is that for all companies that have/roll out CST's?
Come to think of it I havent seen any myself.

More shockingly is the difference between R1.25 vs R0.06, shows you what is possible and how inflated the R1.25 is.
 
Seriously guys, yes they are making a profit, but because they are making a profit they now want to extend this program, do you really think any company would want to do this kind of thing at a loss, or even breaking even.

Business is about making money, and if like Cell-C you can make money while at the same time benefiting the community, well all the better. Once Cell-C starts disconnecting these services because they can not be afforded then we can start comparing them with telscum, but right now, they are doing what none of the other telco companies were able to do, and making a profit of it.

btw the .06 cents is only the interconnect fee, it does not include any of the other costs such as infratructure etc, while I'm sure Cell-C is making a nice profit of this, I doubt it's as much as it sounds.
 
true, but i think there would be less of a problem if their mark up that 6c was even just double but 15 times more.. no wonder they getting dragged to court.
 
Sneeky said:
More shockingly is the difference between R1.25 vs R0.06, shows you what is possible and how inflated the R1.25 is.
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Except that currently the R1.25 is subsidising the R0.06 so what is reasonable is probably somewhere between the 2.
 
onlyme said:
Business is about making money, and if like Cell-C you can make money while at the same time benefiting the community, well all the better. Once Cell-C starts disconnecting these services because they can not be afforded then we can start comparing them with telscum, but right now, they are doing what none of the other telco companies were able to do, and making a profit of it.
.
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The point though is that the other networks massively reduced their interconnect fees because it was supposed to be a non-profit/charity service. If Cell C's going to make a profit off them its unreasonable to expect the other networks to subsidise these profits.
 
Syndyre said:
The point though is that the other networks massively reduced their interconnect fees because it was supposed to be a non-profit/charity service. If Cell C's going to make a profit off them its unreasonable to expect the other networks to subsidise these profits.
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That is unless Telkom was the network that was subsidising profits then I wish any company that can steal Telkoms profits the best of luck.
 
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