Lets do some maths here.
Vodacom is reported to have made R2,5 billion profit from interconnect charges last year. That includes the money made from the Cell C roaming agreement, but lets accept that in any case.
Their latest quarterly results show that they had 13 Billion minutes of calls in the 1st 6 months of this year, so lets gross that up and call it 25 Billion minutes per year (for the sake of simple maths)
So, even if Vodacom completely wipe out the profit they make on interconnect - and just break even - you are looking at 10 cents per minute reduction in call costs......
Not exactly earth shattering is it?
I think this whole interconnect thing is a red herring, brought up by people who really have no clue what they are talking about, and think that reducing the interconnect rate will drastically reduce call costs, when the simple maths shows that this cannot be the case.
Vodacom is reported to have made R2,5 billion profit from interconnect charges last year. That includes the money made from the Cell C roaming agreement, but lets accept that in any case.
Their latest quarterly results show that they had 13 Billion minutes of calls in the 1st 6 months of this year, so lets gross that up and call it 25 Billion minutes per year (for the sake of simple maths)
So, even if Vodacom completely wipe out the profit they make on interconnect - and just break even - you are looking at 10 cents per minute reduction in call costs......
Not exactly earth shattering is it?
I think this whole interconnect thing is a red herring, brought up by people who really have no clue what they are talking about, and think that reducing the interconnect rate will drastically reduce call costs, when the simple maths shows that this cannot be the case.