New termination rates: will it mean lower prices?

I think guys like CellC might reduce SLIGHTLY...

VC and MTN will do bugger all as usual, and keep their high prices and monumentally confusing tariff systems.
 
It's nice to see some good news, especially since it will level the playing ground a bit. I do hope the smaller operators will use this to improve their network (I am assuming they will see some savings from the price cuts). I'm happy with Cell C's voice and SMS pricing....I wouldn't mind if they don't drop, but work on a better network.

Vodacom and MTN must be pissing themselves now, sitting together, drinking some Vodka to ease the pain :)
 
I doubt there will be major savings passed onto consumers
However the reduction will benefit competition etc ...

all and all a good thing in my view, hopefully shareholders will hold management of the dominant two to account if they fail to innovate.
 
Call Termination Regulations 2014

How to Capitalise on the Regulations

Cell-C / Telkom-Mobile

Considering the new regulations place Cell-C / Telkom-Mobile at a distinct advantage for 3 years.
This window of opportunity needs to be maximized immediately.

What Can be done immediately ?

Cell-C have launched the All in one vouchers for
R49 with Only On Network Minutes & SMS
----------------------------------------------------------------------------------------------
This must be opened up to all networks immediately
with 100 minutes to any network – ( R20 Net Termination Rate Payable )
With 100 SMS to any Network – ( R0-00 Termination Fee Payable )
With 100 MB of Data - ( R2-00 Net Cost to operator )

Net Profit of R22 after Expenses
This will stimulate Customers to Join Cell-C and move away from MTN & Vodacom which will create a nice platform
for incoming Asymmetrical Termination Revenue.
This will also create a balanced load on the network and Customers can call anytime of the Day during the month.

Cell-C needs to revise it pricing and submit to ICASA immediately on a permanent basis.
----------------------------------------------------------------------------------------------
Cell-C Standard Tariffs

50c per minute to any network anytime billed per Second from the first Second.
30c per minute to Cell-C Numbers on network anytime billed per Second from the first Second.
20c per SMS/MMS to any network anytime
20c per MB of Data anytime
60c per Minute to International Calls billed per Second from the first Second

----------------------------------------------------------------------------------------------
Cell-C ALL DAY Tariff

40c per minute to any network anytime billed per Minute from the first Minute.
20c per SMS/MMS to any network anytime
50c Per MB of Data anytime
60c per Minute to International Calls billed per Minute from the first Minute.
----------------------------------------------------------------------------------------------
Telkom-Mobile

50c per minute to any network anytime billed per Second from the first Second.
25c Per Minute to Telkom-Mobile Numbers anytime
25c Per SMS/MMS/MB of Data Anytime
60c per Minute to International Calls billed per Second from the first Second

----------------------------------------------------------------------------------------------
 
When in doubt, regulate. When still in doubt, regulate regulation

IMNSHO, Vodacom has it right:
“This prejudices Vodacom’s customers, and rewards those who have not invested in their networks at the expense of those who have.”
Click to expand...
Why must Vodacom's clients be inconvenienced to have to move to a smaller operator in order to get better prices?
 
Last edited:
cfilorux said:
IMNSHO, Vodacom has it right:
Why must Vodacom's clients be inconvenienced to have to move to a smaller operator in order to get better prices?
Click to expand...
because it has NOTHING to do with Vodacom clients

ICASA is not determining the retail pricing at all and the only reason why Vodacom customers are paying more is because they agree to pay more by using Vodacom - and that is assuming that it costs more to use Vodacom, which is something the company constantly seeks to refute.

The reality is that Vodacom and MTN have adopted anti-competitive strategies which depend on high MTRs and low FTRs (the joint effect being the shafting of Telkom - now if there was a direct transfer to customers why should Telkom customers be inconvenienced for the large MNOs) such as to ensure customer on net retention with promotional pricing while squeezing on off net calls (another consequence of this is that customers "enjoy" the convenience of very haphazard and irrational pricing) - this is only one of many revenue strategies. Now adopting an anti-competitive strategy in itself doesn't bother me - in the long run they simply don't work and it is the providers risk - but adopting an anti-competitive strategy in a market that is closed with state force is a very very different situation as it amounts to using violence to protect a cartel.
 
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