Interconnect chaos

Great article - raising some of the same concerns I have raised over the past few days:)
 
If we had an effective regulator none of this would have been necessary. Kudo's to the minister and parliament committee for giving ICASA a good hiding - something may actually come of it. But yes, leave ICASA to do its job now - there is a real danger of too many fingers in the pie here.
 
One of the most stupid articles I have ever read. From what pot of gold at the end of which rainbow could anyone get the idea that ICASA would have affected a drop in interconnect rates on their own steam.

It was only when the politicians started opening their mouths and embarrassing the crap out of them that ICASA got off their backsides and had a pow wow with networks on this topic. And initially they were talking about the networks agreeing to "voluntarily" reduce interconnect rates to a "mutually acceptable" level in February next year. Which if left unhindered would have seen interconnect drop from R1.25 to R1.20.

Hilton has forgotten ICASA's track record, otherwise he would not have written such an idiotic piece.
 
Gatecrasher said:
One of the most stupid articles I have ever read. From what pot of gold at the end of which rainbow could anyone get the idea that ICASA would have affected a drop in interconnect rates on their own steam.

It was only when the politicians started opening their mouths and embarrassing the crap out of them that ICASA got off their backsides and had a pow wow with networks on this topic. And initially they were talking about the networks agreeing to "voluntarily" reduce interconnect rates to a "mutually acceptable" level in February next year. Which if left unhindered would have seen interconnect drop from R1.25 to R1.20.

Hilton has forgotten ICASA's track record, otherwise he would not have written such an idiotic piece.
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+1 thats why I admired the DoC when the made the announcement. It wasn't a "How do you feel about this if we do that?" kind of scenario. It's a "You're going to do it or you lose your license" scenario. Something ICASA should have done a long time ago.

And look, it only took 2 months to do, whereas ICASA would probably sit around drinking tea and cookies watching porn from their FREE internet "sponsored" by Telkom for several years before we see anything happening.

But like I said, I would love to see this being seen through well after 2010 world cup, it might only be a smoke screen for the "world" to not point to SA and say "why are they bunghole raping their citizens like that!"
 
Rat

From the smell I am getting there are more than one dead rat........ This whole issue stinks and reeks of lies lies and more lies!!!!
 
Hilton's reply when asked:
"Hilton, are you in the pocket of these guys?"

Hardly. The point here is that there are four conflicting processes. This is the joke, and you can be sure that all the operators - even the fixed line ones - are (privately) dumbstruck at the circus. Only one of these processes, the one being undertaken by Icasa, is the correct one to follow by the very laws, regulations and regulator government created. Government (both the DOC and Parliament) has confused forcing a drop in interconnect with operators lowering retail prices. In fact, they may succeed in forcing interconnect charges to 60c, and consumers will not see a similar reduction in retail prices. No one wins. Especially consumers. Do you not think Icasa is trying to achieve a gradual decrease in interconnect tied to "suggestions"/undertakings that the operators decrease retail prices? Wait, why don't we abdicate responsibility to government to set all telecoms prices? While we're at it, they can take control of all pricing in this economy.
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Its simple, Government owns large part of Telkom. Telkom pays R4.5bil annually to vodacom and MTN.

Government wants kickback from telkom for reducing that cost.

But I think the industry will improve with a bit of "cut and thrust"
 
Sapphiron said:
Its simple, Government owns large part of Telkom. Telkom pays R4.5bil annually to vodacom and MTN.

Government wants kickback from telkom for reducing that cost.
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FINALLY - the first analysis of what the issue is REALLY about.

He hit the nail on the head!

Does Government still hold a stake in Hellkom? Than it makes even more sense!
 
Interconnect Rate is the start of lower prices............

Interconnect Rate is the start of lower prices,

Firstly if we have a controlled interconnect rate set by ICASA, then we have a neutral system for charging ( which off course should be cost based )
All calls terminated by a mobile network operator will be let's just say 30c per minute.

All other Operators and Service providers can now start charging 50c per minute to a mobile number and still make a handsome profit.

That is competition at it's best :)

Operators like Neotel, Cell-C , Telkom, Telkom Mobile, Iburst and all the VOIP Operators can eat into the Great Telecom's PIE of SA.

By providing cheaper services they will attract clients.

MTN & Vodacom's Revenue will fall nicely. :)

;)


MTN & Vodacom can keep their prices high while Cell-C & Telkom Mobile start stealing all their Customers within 2 years.

With Iburst , Neotel and Telkom Mobile rolling out infrastructure. Mobile broadband will evidently become cheaper with or without MTN & Vodacom.

IF we licence another 3G only mobile operator now.

We have set the cat amongst the pidgeons for the next 3 years.

This is the reason we have to drop Interconnection Rates now to a low of 15c per minute.

SMS charges also need regulation.

Anyone want to guess what the costs are of providing the service in SA are ?

Neotel is offering SMS Nationally over their Network for 10c and they are making a decent profit. ( The Costs for GSM & CDMA is almost the same. With GSM costing a little extra but very marginal )

Neotel offers Voice calls for as little as 47c per minute.

Neotel may be a fixed line operator but it is using everything in the mobile world to provide this service as a fixed replacement and the mobile operators
use the same except for the Choice of Technology. GSM & CDMA.

Compare Neotels 10c against MOBILE Operators 80c per sms.

Compare Neotels 47c against the Mobile operators R2-85c for Voice.

Come on guys ...................................

They MTN & Vodaocom have a right to print money.

If it was so difficult to offer lower call rates i wonder what those blokes in india are doing right.

DXL - Team
 
sorry hilton.......no chaos here (except perhaps in the Vodacom and MTN boardrooms)

10 years from now ICASA would have still been doing studies and negotiating

where the government interferes or threatens for the good of the consumer, I'll support it.
(i'm not aware that the gov. has yet acted illegally in this process)
 
Just want to say one thing:

If interconnect costs are a zero sum game and prices will not drop after the interconnect rate drops then why is there a difference between the cost of on-net and off-net calls? Both calls should cost the same if the interconnect rate has no affect on the cost of making a call.
 
DXL said:
Compare Neotels 10c against MOBILE Operators 80c per sms.

Compare Neotels 47c against the Mobile operators R2-85c for Voice.

Come on guys ...................................

DXL - Team
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The entire principal of fixed wireless is that copper is expensive and maintenance of that infrastructure (even with FTTC based installs) is a good deal more costly than running a wireless infrastructure.

Bear in mind that full mobile operations have got to have greater density and higher coverage... but at six times the cost?

You guys should have seen MTN dodging questions on ENews earlier and almost talking themselves into a corner on what they do with the defacto profit made from interconnect. I mean, sim cards cheap because of interconnect? the poor often call the poor (like yebo 5) at rates of R3 and higher per minute, it's not the receiving, it's the calling...

at interconnect of 60c, it becomes feasible for other operators to trombone trunks and offer calls to the same network lower than the network offers it's own clients. cost of trombone is R1.20 + profit margin... the network now has no choice but to drop the rate as call back may become very... very popular.

D
 
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AmaDownload said:
FINALLY - the first analysis of what the issue is REALLY about.
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What do you mean "finally?" Every third post on the numerous threads on this topic have said exactly the same thing.

But if the Devil puts his seatbelt on, it doesn't mean seatbelts are bad.

Whatever Government's ulterior motives are for intervening, the intervention is long overdue and very, very welcome.
 
Sadly, I expected they'd be fighting this tooth and nail :(

The longer this fiasco goes on, the more it appears that this revenue has kept the like of MTN and Vodacom fat in loot.
 
Here's an idea: let Icasa finish what it has started. The regulator is set to meet with operators again on Friday.
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Yes, !CASA may have started this process, but it's taken them years and it's not like they were getting anywhere with all their studies.
This process could've and would've continued for many more years if guavamunt hadn't actively named and shamed !CASA into getting off their fat arses and doing something about it ASAP.
 
When will these operators learn: it costs +10x more to re-convert a lost client then not having pissed them off in the first place.

Do they not see the value of Brownie Points? Who's going to be the first to score big with consumers? Looks to me like they're all dressed in steel-toed boots, sitting on their own feet, and enjoying it.
 
The article says it all: "Years". I think vodacom and mtn is feeling the heat from all sides. Telkom has been losing mtr to them for years now. Funny how cell c welcomes the reduction but voda and mtn say they will up other costs and it will cause them to divest. If voda and mtn do not play ball then good,enough consumer orientated companies want your market share
 
You do realise that there is absolutely no need for an interconnect fee whatsoever. If you want to be telco you have to provide the ability for me to talk to anyone, and likewise, for anyone to be able to talk to me.

I am a subscriber on your network and I receive calls too. You need to provide the equipment and systems to allow for that and it matters not where the calls come from. You've already tried to say that the interconnect fees are a zero sum game and now it's time to mess around with a petard.

One of the problems that the telcos have is that they are really inefficient in the way they operate. Why bother to be when you have too much cash?

However, there is a bit of light, with cheaper calls it is possible that call volumes may increase so that individuals have the same net spend per month.
 
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