Operators wont speak about interconnect rates

[rpm]

Operators mum on interconnect rates

ICASA recently announced that interconnect rates should come down in six months, but operators are mum on the issue

 

[LazyLion]

hmmm, wonder why... maybe they never actually agreed to anything.

 

[ldmelsa]

I've said it before, and will say it again. Those who have nothing to hide, hide nothing.

 

[The_Unbeliever]

Transparency? Nothing.

 

[deweyzeph]

Oh come one, can anyone honestly believe that all these telecoms companies are going to sit down at a table together and voluntarily decide to reduce their interconnect charges just because ICASA has asked them to play nice with each other?

 

[Takkies]

Why even write the article?

I'm afraid I have NO faith in the effect of these discussions.
ICASA is clearly toothless. They use phrases like "acceptable levels". To whom are the levels supposed to be acceptable? Telkom? Vodacom?

I'm sure that they find the current rates perfectly acceptable. I believe, on the other hand that 15c is probably acceptable. I think this is a great ploy by ICASA to waste another 6 months. Maybe they with drop the rate slightly, just before the next Telkom increase on Line Rental.

What the market really needs is for a big player (maybe Vodacom) to drop IC rates substantially and suddenly. Hopefully they will grab a chunk of marketshare before the others follow suite.

I won't however be holding my breath.

 

[Albereth]

Alan Slip-Knott (as heard on 702 this morning) said that ICASA had the number that the operators would be happy with as a charge but dodged efforts to find out what that number was.

 

[Creag]

Vodacom merely said that “the meeting was productive and Vodacom looks forward to further discussions on this matter”. Cell C was even less forthcoming, saying that “the statement issued by ICASA was agreed upon by all the operators and we can therefore not comment any further at this point in time."

Regretfully it doesn't tell you much about their thoughts on this ... except we need to get back to our lawyers to see if we can wangle our way out of this

MTN, Neotel and Telkom did not provide any feedback regarding the meeting with ICASA, no hint was given as to whether they are confident that negotiations will be concluded by December 2009 and whether they would in fact like to see lower interconnect rates.

I do not believe the big players would actually voluntary agree to the reduction in fees. :erm: I am happy to be proved wrong.

But once again, hats off to ICASA for their initiative!

 

[NoNameMonkey]

It is inevitable that the internect fees will drop, however, any reduction is going to hit the supplier’s bottom lines in a huge way.

These kinds of agreements aren’t ironed out in an afternoon - despite ICASA’s eagerness to pronounce that in 6 months time we will all be paying less for calls.

I expect a lot of back and forth on this issue, with several extensions before they even get an agreement to reach an agreement…

 

[Johnfpro]

These guys are going to just have to rework their billing models. None of them are suddenly going to report to their shareholders that earnings are going to drop substantially.

Think of it; MTN in are some form of negotiation with this Indian crowd. What would happen if they suddenly announced a large drop in profitability.

These players are no different from banks; they will just find an alternative income stream to make up for any shortfall.

Don't hold your breath.

 

[Nutty Grandad]

Ummm

Does anyone at ICASA know how to turn on a computer?

It is just sickening to think that your life is controlled by people who have no connection to reality!

 

[grok]

It is just sickening to think that your life is controlled by people who have no connection to reality!

& government & politicians & religious nuts etc the list goes on

 

[tjunyat]

MTN, Neotel and Telkom did not provide any feedback regarding the meeting with ICASA, no hint was given as to whether they are confident that negotiations will be concluded by December 2009 and whether they would in fact like to see lower interconnect rates.

Why on earth would the like to see lower interconnect rates? This is their bread and butter and would actually mean they might have to start competing on service levels to win/keep customers, which is completely anathema to them.

 

[longboy]

Alan Slip-Knott (as heard on 702 this morning) said that ICASA had the number that the operators would be happy with as a charge but dodged efforts to find out what that number was.

lol!!!

 

[gmza]

The reason nobody is talking about new rates is because no new rates have been agreed *YET*.

The commitment made by those present was to review rates downwards. The next couple of months are going to involve a lot of meetings and negotiations. The goal (from both industry and ICASA) is to have a plan by 31 Dec. ICASA would like to see implement of that plan from 1 Feb 2009.

It would be naive for anyone to think that an entirely new termination rate regime would be casually agreed by a few representatives in the space of a 1-hour meeting, without the companies in question examining the figures, the effect on their businesses, getting board approval, etc.

The reason why operators may want to see lower interconnect tariffs? Simple: ICASA is going to force rates down. If operators negotiate a rate that appeases the public, the minister, etc, they only need to reduce rates sufficiently to make people happy. If operators fail to negotiate reduced rates, there is a very real risk for them that ICASA will dictate a punitive rate regime.

 

[Mars]

The operators attitude about the interconnect rates is like a rapist caught in the act looking up at the police and saying "whats your point?"

 

[Takkies]

If operators fail to negotiate reduced rates, there is a very real risk for them that ICASA will dictate a punitive rate regime.

Do you really believe this?
I still think ICASA are toothless. This has to have been their most obvious mandate in years.
If they were going to do anything at all why did they wait till now?

 

[arf9999]

T If operators fail to negotiate reduced rates, there is a very real risk for them that ICASA will dictate a punitive rate regime.

ICASA are incapable of dictating a punitive wet fart.

 

[Kilgore_Trout_Redux]

This is all just a ploy to avoid the competition commission's investigation into the matter. Expect them to try finding a legal or political route to avoid it in the time they've bought themselves.

 

[Noruk]

To get together around a table and discuss the matter... :erm: Well isn't that how collusion and price fixing happens?

What should really happen is that ICASA should investigate the actual cost of interconnection rates. Then apply a maximum profit margin to it and then TELL the telcos what they may charge.