Interconnect rate cuts

Nod said:
Why only next year? Did they make a compromise with the network operators, so that they can make some last minute profits before their year end results are calculated?
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Before 2010 to create a false impression for tourists. Who knows, maybe 2010 is an exersice in bringing in new skills :p
 
not gonna be carried down to the consumer... I know that the interconnect between telkom and a certains VANS was lowered, and while the VANS lowered their rate to 39c incl VAT to telkom, telkom kept their rate to the VANS at the same old R1,07 + VAT.
 
oooh... cool... so the rate cuts are imminent??
 
schurtek said:
not gonna be carried down to the consumer... I know that the interconnect between telkom and a certains VANS was lowered, and while the VANS lowered their rate to 39c incl VAT to telkom, telkom kept their rate to the VANS at the same old R1,07 + VAT.
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'cos that's what Telkom must pay to the cell operators...
 
Seeing is believing - what's the bet all the councillors get job offers on 25 December which results in everything being delayed to 2012
 
My hat off to ICASA for pulling off something which never seemed likely :)

Whilst I remain positive it will happen, I would love to know what the response is going to be from Vodacom and MTN? :confused:

Although I do not think their dominant position will be threatened by this cut, I do think that competition stakes will be higher and they will need to be a lot more thoughtful about the way in which they conduct business.

Sadly though, they have been afforded a significant head start.

To Virgin and Cell C; all the very best! :D Hopefully you can now throw the tiger among the chickens and make good on all the ideas you have promised.
 
Full & Final Outcome..............

Full & Final Outcome..............

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OPTION-1

Here it goes guys , Please read this post after the final rates are announced cos i normally 99% strike rate get these things right.

Come 31 December 2009 - Negotiations complete amongst Operators.

MTN & Vodacom decide to level the playing fields with Interconnection rates with other Operators.

Since MTN & Vodacom are the biggest winners with high interconnection Rates, they come up with an idea to fool the other Operators.

The idea is as follows a flat rated Interconnection rate of R1 per minute either way.

MTN/Vodacom - NEOTEL/CELL-C/Telkom/Vans-Voip = R1-00

Since most calls Terminate on the mobile Networks they will be net winners.

Now the Question ? How do we keep ICASA happy ?

They voluntarily agree to lower Interconnection Rates over a 3 Year period

R1-00 - 2010
R0-80 - 2011
R0-60 - 2012
R0-40 - 2013

By the time we reach 2013 they Decide its not feasible to reduce the rates to 40c per minute. So it remains at R0-60c per minute forever.

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OPTION - 2

The comms Minister issues a public Directive to ICASA with Timelines ( 3 Months ) to formulate and implement the process of lowering Interconnection Rates to R0-25c per minute even with a 2 year Work-Down.

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Now since we have never seen any action from ICASA in the public interest i would not hold my breath for option 2 to ever pan out.

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Now here's the good news if 1000 people send in their suggestions to the comms minister on the Interconnection Issue. HE might get a little involved reading and might even extract all the good and make it POLICY.

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DXL - Team
 
jak3 said:
anyone want to guess what the new rates will be?
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The process will be industry led, ICASA only having an oversight role, whatever that means.

I predict 95c to 99c per minute, inflation linked. In 2 or 3 years we will be again be at a rate we are now. No operator will have the same interconnect rate as another to facilitate competition.
 
any bets that they will actually stick to the deadline?
 
Being an eternal optimist, I'll take you up on that one!!
 
Again, I think this is a gvt tactic to lure the skills that have been part of the brain drain back to SA by creating a fake investment environment.

And moggie - you are old fashioned. (let me know if I did it right :) )
 
1 February? That's promising and a much better time-scale than ICASA's been bandying around. I'm beginning to really like our new Communications Minister. He's a lot more proactive and commanding (hur hur) than the previous one(s).

Juice
 
DXL said:
Full & Final Outcome..............

--------------------------------------------------------------------------
OPTION-1

Here it goes guys , Please read this post after the final rates are announced cos i normally 99% strike rate get these things right.

Come 31 December 2009 - Negotiations complete amongst Operators.

MTN & Vodacom decide to level the playing fields with Interconnection rates with other Operators.

Since MTN & Vodacom are the biggest winners with high interconnection Rates, they come up with an idea to fool the other Operators.

The idea is as follows a flat rated Interconnection rate of R1 per minute either way.

MTN/Vodacom - NEOTEL/CELL-C/Telkom/Vans-Voip = R1-00

Since most calls Terminate on the mobile Networks they will be net winners.

Now the Question ? How do we keep ICASA happy ?

They voluntarily agree to lower Interconnection Rates over a 3 Year period

R1-00 - 2010
R0-80 - 2011
R0-60 - 2012
R0-40 - 2013

By the time we reach 2013 they Decide its not feasible to reduce the rates to 40c per minute. So it remains at R0-60c per minute forever.

--------------------------------------------------------------------------
OPTION - 2

The comms Minister issues a public Directive to ICASA with Timelines ( 3 Months ) to formulate and implement the process of lowering Interconnection Rates to R0-25c per minute even with a 2 year Work-Down.

--------------------------------------------------------------------------
Now since we have never seen any action from ICASA in the public interest i would not hold my breath for option 2 to ever pan out.

--------------------------------------------------------------------------

Now here's the good news if 1000 people send in their suggestions to the comms minister on the Interconnection Issue. HE might get a little involved reading and might even extract all the good and make it POLICY.

--------------------------------------------------------------------------

DXL - Team
Click to expand...

I have the same feeling for Option 1.

However for Option 2, if the minister/icasa decides to go this route, it will end up in court and after a five year process it will be cut in a small way.

My 2c.
 
NO NO NO! rpm got it wrong! It's not Interconnect rates cuts. It's Interconnect rates UP!
 
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