Outrage over high cell costs
Outrage over high cell costs
May 17 2005 05:15:19:863PM
By: Shoks Mzolo
Johannesburg - As the globe celebrated World Telecommunications Day, local cellphone users remained subjected to exorbitant tariffs by the country's three mobile operators, the Communications Users Association of South Africa (Cuasa) noted on Tuesday.
The group has lodged a formal complaint with the regulator.
The complaint lodged with the Independent Communications Authority of South Africa (Icasa) pertained to all aspects of mobile call charges in the country, Cuasa spokesperson Ray Webber said.
"Earlier this year we promised to investigate the high cost of SMSs and cellular calls in South Africa. We feel that various aspects surrounding cellular call charges warrant closer inspection by Icasa," Webber pointed out.
Icasa said it was considering Cuasa's complaint.
As seen with the proposed "consumer-centric tariff regime" for fixed-line telecommunications operated by Telkom (TKG), analysts expect Icasa to host a public consultative process that may lead to lower tariffs for mobile services.
Lack of real competition
According to Cuasa, the introduction of Cell C has failed to yield a reduction in call costs, a situation seen as indicative of a lack of real competition.
In 2000, Cell C made a three-way deal with peers MTN Group (MTN) and Vodacom, paving the way for the pair to apply for the 1800 GSM spectrum unopposed.
Although Cell C also stood to gain with the duopoly promising to allocate some of their 900 spectrum to the newcomer, some players felt Cell C was colluding with the incumbents - a move that would not result in the intended competitive environment.
Cuasa questioned the dynamics that resulted in costs for some global destinations (both mobile and landline) calls from a Telkom (TKG) line being less than calling a South African mobile number from the same telephone.
"Consider that it is less expensive to call mobile numbers in Canada, Liechtenstein, Luxembourg, San Marino and the US (from South Africa) than it is to call a South African mobile number from a Telkom line," Webber added.
"SMSs cost cellular operators virtually nothing to carry, therefore operators are charging excessive mark-ups and enjoying obscene profit margins for the service at the expense of their users."
South Africa's cell subscriber base - of more than 20 million users - has thus far not benefited from the new telecoms landscape engendered by the introduction of self-provisioning as a result of the overhaul of the sector on February 1.
Outrage over high cell costs
May 17 2005 05:15:19:863PM
By: Shoks Mzolo
Johannesburg - As the globe celebrated World Telecommunications Day, local cellphone users remained subjected to exorbitant tariffs by the country's three mobile operators, the Communications Users Association of South Africa (Cuasa) noted on Tuesday.
The group has lodged a formal complaint with the regulator.
The complaint lodged with the Independent Communications Authority of South Africa (Icasa) pertained to all aspects of mobile call charges in the country, Cuasa spokesperson Ray Webber said.
"Earlier this year we promised to investigate the high cost of SMSs and cellular calls in South Africa. We feel that various aspects surrounding cellular call charges warrant closer inspection by Icasa," Webber pointed out.
Icasa said it was considering Cuasa's complaint.
As seen with the proposed "consumer-centric tariff regime" for fixed-line telecommunications operated by Telkom (TKG), analysts expect Icasa to host a public consultative process that may lead to lower tariffs for mobile services.
Lack of real competition
According to Cuasa, the introduction of Cell C has failed to yield a reduction in call costs, a situation seen as indicative of a lack of real competition.
In 2000, Cell C made a three-way deal with peers MTN Group (MTN) and Vodacom, paving the way for the pair to apply for the 1800 GSM spectrum unopposed.
Although Cell C also stood to gain with the duopoly promising to allocate some of their 900 spectrum to the newcomer, some players felt Cell C was colluding with the incumbents - a move that would not result in the intended competitive environment.
Cuasa questioned the dynamics that resulted in costs for some global destinations (both mobile and landline) calls from a Telkom (TKG) line being less than calling a South African mobile number from the same telephone.
"Consider that it is less expensive to call mobile numbers in Canada, Liechtenstein, Luxembourg, San Marino and the US (from South Africa) than it is to call a South African mobile number from a Telkom line," Webber added.
"SMSs cost cellular operators virtually nothing to carry, therefore operators are charging excessive mark-ups and enjoying obscene profit margins for the service at the expense of their users."
South Africa's cell subscriber base - of more than 20 million users - has thus far not benefited from the new telecoms landscape engendered by the introduction of self-provisioning as a result of the overhaul of the sector on February 1.
