wtf... The point of lower interconnect rates is to create a wider margin for competitive pricing. If our 2 (and a half) major cellular operators don't see this as an opportunity to 'undercut' the competition to gain market share, perhaps someone should start looking for the shady back-room meetings where the 2.5 cellular 'Cartels' COLLUDE and FIX prices at the expense of the consumer.
AKC should take out the nose-plugs and smell what he's shovelling...
+1. AKC please shut your traphole, and MyBB, FFS, please stop publishing this guys drivel. Do we all need to be informed every time he farts?
“Over time, lower termination rates do stimulate competition and experience has shown that this is the mechanism that drives a reduction in call charges,” Vodacom said.
It's funny how these fools contradict themselves.
Remember, high call termination rates create a huge barrier to entry for newcomers. Hence why VodaCON and eMpTyN hiked the interconnect rates just before Cell C launched, and why Cell C struggled all these years. Now it seems AKC wants to maintain/create a barrier to entry for newcomers (Neotel, 8.ta, WISPs, Virgin Mobile and NEW newcomers, etc). Very hypocritical indeed.
Also, what is being completely left out of this discussion, is the hammering that the incumbent operators are starting to take from nimbler VoIP providers, especially in the business market. Their profit margins are not as ridiculous as the mobile operators, and their call rates are even cheaper than Telkom rates, thanks to the reduction in termination rates. They have a working business model that the incumbents are afraid of, and rightfully so.
Also SMS revenues are also starting to dry up, as people move to smarter IM platforms like Watsapp, instead of paying the ridiculous charges for sending 160 characters of text. Data is also seeing downward pressure, and if Telkoms network upgrades (MSANs everywhere) are a success, there will be less motivation to use mobile data services.
These guys will do anything to hold on to their dying business modes. What I see coming - Cell C/AKC/Vodacom/MTN applying to ICASA to stop the rate decreases and/or taking legal action and/or some hiking prices and/or something big along these lines. All the drivel coming out of his mouth is in preparation for something bigger. Get us used to the idea. Pump us with enough drivel, often enough, that we start to believe it. We won't be fooled this time.