Mobile interconnect rate cuts

rpm

rpm

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Cellular interconnect rate cuts

Cellular network operators have made a commitment to reduce their interconnection fees over a three-year period starting from March 1, but no immediate benefit will be transferred to consumers through lower rates.
 
As everything gets cheaper for the operators, we are supposed to pay the same rates. This is the South African way. I wonder when these cost savings will REALLY filter through.
 
This still makes me angry whenever it comes up. It's very nice that they've decided amongst themselves to steal less money from us over a 3 year period. How about giving all cellphone users a rebate for all the money they've stolen from the public over a 3 year period? It seems the big hooha the guavamint made when icasa let them make their own decisions over this has counted for nothing.
 
Gives them time to scrap plans just in case things dont quiet work out... or maybe they hoping no one will even remember all of this in 3 yrs.
 
So the mobile operators are not keen to pass on the cut but the fixed line operator will be reducing it's mobile termintation rates? How ironic!!
 
Why so little though?

It seems the cell operators have flexed their muscles, because they were facing 25 cents not so long ago. I wonder who got the bribe money?
 
The peak rate is expected to reduce further to 85c next year and 80c by March 2012.
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So instead of their old 1000% profit...they now are willing to settle for 800%
 
So far it looks like only telkom will be passing on the full amount to us. Looks like all the others want to keep screwing us; just in a different style!
 
moggie said:
So far it looks like only telkom will be passing on the full amount to us. Looks like all the others want to keep screwing us; just in a different style!
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Where did you get that idea? Telkom will be saving about R1bn per annum in costs. If they simply pass on all the savings, that would mean an immediate reduction of R1bn in annual top line revenue. If they did that, their share price would tank, and the board would probably fire the whole of their top management. At the parliamentary hearings last year, Telkom refused to commit to passing on the savings. Expect lots of smoke and mirrors, but you won't be getting the R1bn (at least, not from Telkom).
 
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ads said:
Where did you get that idea? Telkom will be saving about R1bn per annum in costs. If they simply pass on all the savings, that would mean an immediate reduction of R1bn in annual top line revenue. If they did that, their share price would tank, and the board would probably fire the whole of their top management. At the parliamentary hearings last year, Telkom refused to commit to passing on the savings. Expect lots of smoke and mirrors, but you won't be getting the R1bn (at least, not from Telkom).
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Remember this post in a few days time. ;)

Somewhere around 36c/min .....
 
The peak rate is expected to reduce further to 85c next year and 80c by March 2012.
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What the hell? Was it not supposed to be 20-odd cents by 2012?

Patricia help!!!
 
Honesty & Truth - article

Smooth Criminal said:
What the hell? Was it not supposed to be 20-odd cents by 2012?

Patricia help!!!
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Dear RPM,

Please add some honesty and Truth to your Follow up article on this Interconnection Issue.

Icasa was asked to reduce Interconnection rates to a cost based system that all operators must comply with.

The Operators have decided before Icasa imposes any regulations on them regarding cost based system.

They have put in their rates to Icasa.

The cost based rate for mobile Interconnection in South Africa is Cuurently sitting at 31.5c per minute with a 30% profit margin for the operator completing the call.

MTN - VodaCom and Cell-C are trying to blindfold the regulator and the PPCC on this issue before the lower rates are imposed on them. The Mobile Operators know they cannot win in court. So they are trying reverse psychology on the Policy makers and the public.

MTN - VodaCom - Cell-C i hope you dont think the whole country is as stupid as ICASA.

On the Telkom issue - Telkom Mobile will be the cheapest Mobile Service all round with everything in SA.

Thats a firm Gaurantee - Their Coverage will Only expand Nationally after 2011 - However right now they are doing well with the Roll-out.


DXL - Team
 
DXL said:
On the Telkom issue - Telkom Mobile will be the cheapest Mobile Service all round with everything in SA.
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Any thoughts on their interconnect rate? Presumably, they'll fall in with the rest at 89c.
 
If there's no benefit to the consumer from a decrease in the interconnect rate I have to assume there will also be no negative impact if any other input cost increases?
 
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