Mobile termination rate talks between operators terminated

Pilgrim said:
Probably not. Keep in mind the only reason the DoC cares about the high interconnect rates is their cashcow telscum is on the short end of the stick. They have to lower interconnect to increase their own profits. Nobody ever said anything of ensuring that those savings are passed on to the consumers :sick:
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rpm said:
This is what Neotel CEO Ajay Panday is punting: make sure the savings are passed on to consumers. This is certainly not a given!
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The only operators who would experience a saving due to a drop in the interconnect rates are Neotel, Telkom and the Voip operators. A reduction in MTR will result in the mobile operators earning less profits unless they increase their charges to the customers.

I find it ironic that Ajay Panday is not disclosing this when stating that the savings need to be passed on to the consumer.
 
mikef said:
The only operators who would experience a saving due to a drop in the interconnect rates are Neotel, Telkom and the Voip operators. A reduction in MTR will result in the mobile operators earning less profits unless they increase their charges to the customers.

I find it ironic that Ajay Panday is not disclosing this when stating that the savings need to be passed on to the consumer.
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He is waiting until he gets what he wants (lower interconnect rates) Then he will use that information to explain why, even though they try their best, prices remain high. Ag shamies...

P.S. Updated my Neotel Lies Timeline
 
mikef said:
The only operators who would experience a saving due to a drop in the interconnect rates are Neotel, Telkom and the Voip operators. A reduction in MTR will result in the mobile operators earning less profits unless they increase their charges to the customers.
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The operators will only make a "saving" if retail rates remain unchanged. You seem to forget that its not MTR but TR money, and it flows the otherway (from MTN & Voda to Telkom & Neotel) too. Just the articles published only show what the each operator is paying and not what they are receiving. They also pay these "bills" with Sipho End-Users money not their own. ALL the operators will lose out on revenue and income when the termination rates drop AND retail rates are forced down by the same amount.
 
stormy said:
Oh Neotel just shut up...
Sorry. Had to voice my feelings.
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+ 100

No need to apologise. Ajay Pandey please shut your trap until you have something of value to say to the South African consumer.

Even if interconnect rates drop, and Neotel halves their prices, so what?

All that would mean is paying less for a pathetic, mostly unusable service, based on a dying technology, that is available in limited areas??
 
MadMailMan said:
The operators will only make a "saving" if retail rates remain unchanged. You seem to forget that its not MTR but TR money, and it flows the otherway (from MTN & Voda to Telkom & Neotel) too. Just the articles published only show what the each operator is paying and not what they are receiving. They also pay these "bills" with Sipho End-Users money not their own. ALL the operators will lose out on revenue and income when the termination rates drop AND retail rates are forced down by the same amount.
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Not correct - If the interconnect fees were currently symmetrical then the mobile operators would not lose much if they were reduced. However due to the asymmetrical rates between the mobile operators and the landline operators if only the MTR (mobile terminating rate) came down the landline operators would gain at the expense of the mobile operators.
 
this is sad news indeed. But it was always going to happen. Any corporate company that is going to sign over Billions + of Rands just because ICASA said so is living in a fool's paradise.
 
I can see someone at Vodascum and Empty-N laughing as loud as they can. B@stards :-(
 
well no surprises there
somehow an appeal to the morality of vodacom or mtn was always going to flounder (Morally Neutered Operator)
but good to see the mobile breaking ranks - should be a campaign for everyone to switch to Cell C...

the DoC have shot from the hip without properly considering the matter and i cannot see their initiative going anywhere particularly fast

@ the end of the day there is only one answer: doesn't matter how much the portfolio committee postures or how much the DoC issues commands - ICASA has to be fixed up and not used as a political football. Government made the regulator weak because they were suspicious of the power it had (particularly as regards broadcasting) and now we are seeing the consequences.

i am no ICASA fan but please people sort the damn thing out - nothing meaningful will be achieved until this is done
 
+100 to dominic's post..

Nothing will happen of any significance until ICASA is sorted out properly.
 
Who holds a stake in ICASA?
If I was enjoying years of profit, I wouldn't give it up, if I could circumvent some or other policy, with as many holes as our departments maintain.
But I'm not one of the lucky few, so fired all of them!!!
 
Fix iCASA and clean out the sycophants and get the right professionals in there, those with no political affiliations. Then you'll see action! You won't need the bumbling attempts to interfere in the market by the DoC and the parliament portfolio committees if the regulator was properly staffed.
 
The map is drawn. Too much has been said by too many individual and collective bodies for this thing not to play itself out pretty much according to 'plan'.
 
The Portfolio Committee on Communications proposed that mobile and telecoms operators drop the interconnection rates with effect from 1 November 2009 to 60 cents per minute during peak times. It further wants interconnection rates to be reduced by 15 cents annually on 1 November for each successive year until 2012.
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I want cheap calls just as much as the next guy, but this is seriesly the worst idea yet... 2009 = 60c, 2010 = 45c, 2011 = 30c and 2012 = 15c.

15c? That's lower than the interconnect to Telkom. It will be cheaper to phone a mobile phone than a land line. The networks will be over crowded with people phoning for hours on end... we'll never get our work done...

I think, set the fee at 60c and leave it there... it's a fair price...
 
The government drags it's big fat fluffy luxuriously pampered feet.
This one could take longer than LLU.

I guess that the only possible way to get some of your money back from the likes of Voda is to buy shares.
 
This will probably have to go to the High Court before there's any drop in interconnect rates. There are other players apart from MTN and Vodacom who also stand to lose out if there's a drop in interconnect rates too. Think of all the reduced revenues to LCR providers who have made a very nice business out of high mobile rates. There is significant will to drag this out from more than a few quarters.
 
yavahn said:
Who holds a stake in ICASA?
If I was enjoying years of profit, I wouldn't give it up, if I could circumvent some or other policy, with as many holes as our departments maintain.
But I'm not one of the lucky few, so fired all of them!!!
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I would love to see a list of the people that were previously employed by, or have shares in the various telecoms/ISP companies, yet are employed by ICASA.

Also, those that left ICASA, after ensuring favourable conditions for any of the various telecoms/ISP companies and were then employed by the particular telecoms/ISP company.

dominic said:
icasa press release
http://www.icasa.org.za/Home/tabid/38/ctl/ItemDetails/mid/501/ItemID/199/Default.aspx
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From that pdf...
As a matter of fact, Vodacom and MTN refused to disclose their bilateral mobile termination rate agreement at the meeting.
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moggie said:
Fix iCASA and clean out the sycophants and get the right professionals in there, those with no political affiliations. Then you'll see action! You won't need the bumbling attempts to interfere in the market by the DoC and the parliament portfolio committees if the regulator was properly staffed.
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Ghosts of Xmas past... http://mybroadband.co.za/nephp/4790.html telkom will soon employ William Stucke...

risingtide said:
The map is drawn. Too much has been said by too many individual and collective bodies for this thing not to play itself out pretty much according to 'plan'.
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Yep, telkom now wants lower interconnect. It then is suddenly pushed through by their guavament buddies, in a few months. When telkom orders it's a** lickers to do something, they tremble and lick.
 
If ICASA were clever, they would say, look, either you agree with what we propose or we regulate, and you might expect some more stringent restrictions if that is the case!
 
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