Icasa takes charge against mobile operators

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Icasa takes charge

South Africa's mobile operators are caught between a rock and a hard place as the country's telecoms regulator moves to regulate interconnection rates.
 
ICASA couldn't take charge of pointing their winky in the middle of the toilet bowl.
 
Understand

hopefully the new will be better than the old and interconnect rates will be cost based, we shall


Let me see if I understand this please:

Cost mean the real cost, it cost, say MTN, to connect 2 points in its own network say 5c per unit...... Am I right so far?

The rate a MTN user (pre or post) pay mean the addition to the real cost, say MTN adds 5c, to connect 2 points in its own network makes 10c per unit...... still OK??

So what is aimed at (also in the article) is for MTN (as above) to connect a entry point into its own network to any other point in its own network for 5c per unit......... Right?? and for carrying that connection make no profit???? Right so far?

So if I use the same simple way of my thinking the network terminating into the MTN network (as above) make a profit on that connection???? Right?????

So the network that will make the most profit will be the network that "originates "the most connections???? Right???

I know my way of thinking here is from a very limited knowledge base, I am just trying to figure this out for my self....

So it two networks would say that they do not charge each other to terminate connections into each other, the one that will make the most profit will be the one who runs the most efficient operation (smallest cost), and get the highest originating utilisation of its network...... Right????

One way to achieve that is through rates, and service...... Right???? This sounds like hard work and compitition to me.;)

Sorry for the spelling........ one or two or three....... Also sorry if this not make sence, but it is prob not a quick read.

IF I AM RIGHT...... Why is this such an issue???:confused:
 
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While the poorest consumers may be adversely affected by excessive prepaid call rates, the mobile operators make most of their revenue from their high-end contract customers, so the cheaper prepaid rates were hardly a major concession for them.

Can someone in the know give an indication of revenue percentage split between contract and prepaid? If this is true then why the fuss from mobile operators?
 
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