Considerable interconnect rate cuts proposed by ICASA

ICASA prosed the following pricing guidelines:

1. Mobile termination rates are proposed to be reduced to R 0.65 from July 2010 and further reduced to R 0.40 from July 2012.
2. Fixed termination rates are proposed to be reduced to R 0.15 from July 2010 and further reduced to R 0.10 from July 2010.
Click to expand...
Am I missing something? Those dates seem a bit weird :/
 
dont see the mobile giants letting it go without fighting tooth and nail to keep it as high as possible. Remember these are proposals. Look at what happened to the proposed ADSL regs. Expect them to be watered down massively, along the lines of "The current R0.89c will be reduced to R5.00 from July 2010"
 
Last edited:
Well, if they have the Balls they should stick by their proposals. Maybe they have turned over a new leaf................................................................LOL sorry that wass quite amusing
 
The new prosed interconnect price cuts are certainly very aggresive, and may well mean far lower prices to consumers. It will be great news if the draft regulations make it through in its current format, but I expect a massive (billion rand) fight from Vodacom and MTN.
 
A year between the drops seems alot but I suppose that sort of thing is to be expected.
 
“ICASA is obliged to ensure that remedies are proportionate to the scale of the market failure,” said Makhakhe.
Click to expand...

Love the wording in the above statement. Well done to ICASA on appointing someone with some brains.

Now PLEASE don't let this end up being just be another proposal. Implement the damn thing, and we will all rejoice, and forgive you for (some of) your past transgressions and oppression.
 
Me thinks Vodacom is going to show ICASA the finger... and the door!
 
Not that the previous drop in connection rates resulted in lower prices. Maybe for some but not for those on contract.
 
Call termination rates came down, and certain call rates increased by close on 60%. I don't think we can afford any more decreases in the call termination rate ...
 
evilstebunny said:
Not that the previous drop in connection rates resulted in lower prices. Maybe for some but not for those on contract.
Click to expand...

Well they have no choice in the matter really. When confronted as to why call prices were so high, the operators themselves pointed to high interconnect rates.
 
BGE said:
Me thinks Vodacom is going to show ICASA the finger... and the door!
Click to expand...

There is not much Vodacom can do about it, really, except be thankful that they've had it so good for so long and that the new rate isn't 25c and effective immediately.
 
Its not going to happen, a Big Gravy Train is on its way to top up ICASA's Pockets
 
Gatecrasher said:
There is not much Vodacom can do about it, really, except be thankful that they've had it so good for so long and that the new rate isn't 25c and effective immediately.
Click to expand...

They could pull a Telkom and say that this is a matter of competition and so the Competition Board should get involved. Then when the Competition Board get involved they can claim that it is an ICASA thing. Keep them running around for years like that. Or they can drop the call rates but charge R10 an SMS to make up the money. Or they can keep data prices high. They is so much they can do to hurt us :(
 
It looks like it is not merely a proposal, but will be gazetted:
Johannesburg - The Independent Communications Authority of South Africa (Icasa) on Thursday finalised interconnection and call termination regulations, delivering a much-needed fillip to consumers.

In delivering its stipulations, Icasa said competition was lacking in South African telecommunications, and that more transparency was required.

In terms of the new regulations, mobile interconnect rates must be reduced to R0.65 per call by July 2010 and decrease to R0.50 by July 2011, and to R0.40 a year later. For fixed lines, the termination rate must be reduced to R0.15, R0.12 and R0.10 over the same milestones.

The regulation also identifies two separate groups of telecommunications companies: SMP licensees (which includes all players offering call termination services) and established SMP licensees (which includes Vodacom, MTN, Cell C and Telkom).

The regulation requires smaller players to incorporate the same interconnection fees as established companies.

According to Icasa, failures in the telecommunications sector so far included "Lack of sufficient access networks, lack of transparency, discrimination concerns and pricing,".

'You've aced it'

Said Icasa councillor, Thabo Makhane: "Remedies to these problems must be proportionate to the scale of the market failure".

MTN, Vodacom and Telkom were expected to comply with more intrusive rules in the future, both in terms of the rates to which they must comply and their own accounting.

They will also be required to provide Icasa with information as to how they cross-subsidise their tariffs.

"All licensees are to submit relevant market data on a biannual basis so that Icasa can monitor trends in the market," said Makhane. He added that this would also encourage transparency.

"We expect the fixed-to-mobile retail call rate to decrease as mobile termination rates are reduced. We also encourage a 100% pass-through in charges from fixed to mobile phone calls and will monitor this vigilantly," said Makhane.

"You've aced it," said John Holdsworth, CEO of ECN Telecommunications on Icasa's new cost regulations.

The regulations will be made publicly available on Friday, and will also be gazetted in parliament.
Click to expand...
http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-1786_2579732

If they pull this off then I'll give credit where it's due, but would also like to know what the delay is around other issues such as LLU. Do we really need parliament to kick up a stink for them to do their jobs?
 
ICASA is synonymous with FAILURE

This should have already happened a year ago, along with the Local Loop being unbundled.

Somebody needs to light a fire under their rotting corpses.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X