Interconnect rate cuts

I'm sure MTN and Vodacom will be arguing for interconnect rates to be slashed from R1.25 to R1.20.
 
Gatecrasher said:
I'm sure MTN and Vodacom will be arguing for interconnect rates to be slashed from R1.25 to R1.20.
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I suspect the same, but in the unlikely event that we do see 25c what does it mean? Does my call rate drop from R2.xx to R1.xx per minute?
 
Gatecrasher said:
I'm sure MTN and Vodacom will be arguing for interconnect rates to be slashed from R1.25 to R1.20.
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My guess is itll be 55-75 cents.

It all going to depend on how firm ICASA is.

If moggie is right about it being as low as 25 cents, itll be game changing. The big operators will never let that happen without a massive fight.

But lets hope.
 
25c should be our dream figure! It is also what the Namibian regulator imposed in their market.
 
We are going backward

The operators were cornered so they are buying time. They know ICASA deadlines always slip. 6 months is way too long.

Also, we have no guarantee the cut will be worthwhile - could be 5%. It's like ICASA writing a blank cheque.

In the meantime, VC and MTN will restructure their packages to maximise profits going forward.
 
entrepr said:
We are going backward

The operators were cornered so they are buying time. They know ICASA deadlines always slip. 6 months is way too long.

Also, we have no guarantee the cut will be worthwhile - could be 5%. It's like ICASA writing a blank cheque.

In the meantime, VC and MTN will restructure their packages to maximise profits going forward.
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Maybe it's just a matter of maximising their profits but lowering their expenses. How often do savings get passed down to the consumer in an honest manner?
 
Too much optimism here. Vodacom (and MTN I suppose) is not the kind of company that will give up revenue unless it is forced by law/regulation to do so. So while it will appear that they cooperate, they will stall proceedings, etc until the laws/regulations are changed. Until then, ICASA cannot force them to concede on the interconnect rate - if they could, they would have already. Changing the laws/regulations will take at least 3 years if ICASA's track record is indicative.
 
ICASA said that the meeting was necessitated by the ongoing public discussions around the cost of call termination in the country.
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Anyone else notice this part...


Anything to do with the Soccer World Cup? Or like you guys say the deadline will slip. The CO's involved will make a killing and give a cut to FIFA.

In my time on this rock, I have never seen as much work done on infrastructure of all kinds as I have in the last two years...

Who could score from this? (Other than us).
Will we really feel this change in the wallet? Ever?
 
SoTrue said:
Too much optimism here. Vodacom (and MTN I suppose) is not the kind of company that will give up revenue unless it is forced by law/regulation to do so. So while it will appear that they cooperate, they will stall proceedings, etc until the laws/regulations are changed. Until then, ICASA cannot force them to concede on the interconnect rate - if they could, they would have already. Changing the laws/regulations will take at least 3 years if ICASA's track record is indicative.
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This part of the article may suggest that ICASA already have the power and do not need to change any legislation

Meanwhile, ICASA said that it will continue with its process in terms of Chapter 10 of the Electronic Communications Act.

This process will entail the publication of the necessary regulatory framework pursuant to regulations defining the relevant market; evaluating the effectiveness of competition; a declaration of licensees with significant market power and the implementation of pro-competitive remedies.
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I think the problem has been that ICASA have the power in terms of legislation. They just have not been using it.
 
Icasa negotiating a new price with telecoms operators.. hahahaha like their past efforts have ever produced anything favourable to consumers. negotiating != 25c, if anything it means in region of 75c-R1.
 
Another interesting fact (which I posted elsewhere) is that I don't believe the mobile operators charge a termination rate (interconnect) to other country operators whose customers roam on their networks. This is effectively zero-rated.

For example, if someone phones a customer from T-Mobile in UK who is roaming on MTN in SA, I believe that MTN does not charge T-Mobile to connect that call through to the customer on MTN's network. It all has to do with competition, because T-Mobile customers have a choice of local network.
 
regulated deadline, non regulated price cap??????

maybe by feb next year they will drop it from the current R1.25 to R1.24, "that is a drop of a massive 0.8%" said vodacom / MTN / Telkom.

IMO they should have said, a drop to R0.25 by 1 Feb 2010. full stop. whatever the regulation and section 10 blah blah blah, we've heard all that, been there and have seen the results.
 
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