New call termination rate regulations finalised

So these were proposed a few weeks ago

MickeyD said:
So the disputed rates were:
2014 - 20c (Asymmetry - 44c)
2015 - 15c (Asymmetry - 42c)
2016 - 10c (Asymmetry - 40c)
2017 - 0c (Asymmetry - 20c)

And they are now:
2014 - 20c (Asymmetry - 30c)
2015 - 16c (Asymmetry - 22c)
2016 - 12c (Asymmetry - 16c)
2017 - 8c (Asymmetry - 10c)

Congrats to ICASA on killing Cell C.
Click to expand...

And TODAY it has changed to:

2014 - 20c (Asymmetry - 31c)
2015 - 16c (Asymmetry - 24c)
2016 - 13c (Asymmetry - 19c)

How the HELL did they get to the new numbers????

PS. remember that they paid consultants a few million to come up with the original numbers...
 
Updated the article with percentages and more comment from Icasa, and some comment from Vodacom.

Not covered in the article are the technicalities of Icasa's approach. In a statement read at the event, the said they developed two cost models to develop the glide path:

  1. top-down LRIC, which uses the operators' actual cost to terminate a call and informed the starting point of the glide path; and
  2. bottom-up LRIC, which is based on the costs of an efficient operator, and was used to calculate the target rate (i.e. end point) of the glide path.

Icasa said it considered the following when determining the call termination rates:

  • Current market conditions
  • Prevailing economic conditions
  • The state of competition in the relevant market
  • Operators costs for providing voice services
 
Jan said:
Updated the article with percentages and more comment from Icasa, and some comment from Vodacom.

Not covered in the article are the technicalities of Icasa's approach. In a statement read at the event, the said they developed two cost models to develop the glide path:

  1. top-down LRIC, which uses the operators' actual cost to terminate a call and informed the starting point of the glide path; and
  2. bottom-up LRIC, which is based on the costs of an efficient operator, and was used to calculate the target rate (i.e. end point) of the glide path.

Icasa said it considered the following when determining the call termination rates:

  • Current market conditions
  • Prevailing economic conditions
  • The state of competition in the relevant market
  • Operators costs for providing voice services
Click to expand...
So they paid consultants to develop different models for them and got a set of numbers. These numbers did not look so good so they were "adjusted" and put forward a few weeks ago as a proposal.

Paw-paw hits the fan and they somehow adjust the numbers and come up with the final numbers published today. Justified by applying not one, but two LRIC models and then applying "conditions".

Yeah.... right!

BTW: Thumb-sucked to appease who exactly?
 
MickeyD said:
So they paid consultants to develop different models for them and got a set of numbers. These numbers did not look so good so they were "adjusted" and put forward a few weeks ago as a proposal.

Paw-paw hits the fan and they somehow adjust the numbers and come up with the final numbers published today. Justified by applying not one, but two LRIC models and then applying "conditions".

Yeah.... right!

BTW: Thumb-sucked to appease who exactly?
Click to expand...

Vodacom and MTN clearly seem very happy with these new rates.....
 
what is the similarity between ICASA and the new iPhone 6 plus?
 
so the litigation is going to happen and be even uglier
ICASA just looking at how to cover their ass
 
Paul Hjul said:
And Ellipsis have put up a copy of the Notice of Motion
so back to court they all go.

http://www.ellipsis.co.za/wp-conten...-of-Motion_-Cell-C-application-for-review.pdf
Click to expand...

Pretty predictable! As were the reasons for the challenge...

MickeyD said:
So they paid consultants to develop different models for them and got a set of numbers. These numbers did not look so good so they were "adjusted" and put forward a few weeks ago as a proposal.

Paw-paw hits the fan and they somehow adjust the numbers and come up with the final numbers published today. Justified by applying not one, but two LRIC models and then applying "conditions".

Yeah.... right!

BTW: Thumb-sucked to appease who exactly?
Click to expand...
 
that they are doing this is concerning....going to be largely on their own this time
and we really don't need to go into 2015 still talking about voice termination rates and having ICASA's meager resources consumed by it when there are far more important and relevant issues
 
dominic said:
that they are doing this is concerning....going to be largely on their own this time
and we really don't need to go into 2015 still talking about voice termination rates and having ICASA's meager resources consumed by it when there are far more important and relevant issues
Click to expand...
The point though is that the challenged regulations are in no better standing than the regulations MTN successfully challenged. I am glad they aren't seeking an interdict but rather using Rule 53 by itself but at the end of the day the legal costs involved are less than the collapse of the business would cost. Until the players are prepared to think outside of very stupid little boxes this will continue.

Will be fun to ask CellC whether they can survive without regulatory favour in January ...
 
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