Telecoms competition hotting up

By banding together and offering ridiculously low interconnect fees amongst themselves they'll be able to make quick inroads into the market - question is will they try to tackle the beast en masse?

Take a bet that if they do, they are going to have an anti-collusion case around their necks before you can say Telkom!
 
Take a bet that if they do, they are going to have an anti-collusion case around their necks before you can say Telkom!

:D Wouldn't expect anything less!

Still, it's good news considering that Neotel haven't had much to work with up until now, and now we have competition. Nice! The real competition will happen when we have competing undersea cables, then telkom will k@k
 
This doesn't make sense. Termination rates apply to incoming calls not outgoing calls.
They are refering what Telkom charges their own customers to terminate to other networks (vs. terminating on their own network)

http://www.telkom.co.za/common/pricelist/prices/local/custtomer_to_automatic_exh.html ... halfway down the page ... read 'em & weep.

For illustration, lets say you have a Telkom phone and called your bud down the road (local) at 9 in the eve (callmore) for 10min. The charges to you would be as follows depending on which phone service your bud had;

Telkom : R 1.70
Neotel : R 6.49
 
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Interconnection is The PROBLEM guys !

Hi guys ,

What really is the problem in the South-African market is the interconnection rates operators charge other operators to complete the call over their network. Telkom , MTN and Vodacom have used anticompetitive high interconnect Tariffs to stop others from getting ahead. Eg. before cell-c entered the market when only MTN & Vodacom were operating the interconnect rate was 25c per minute to carry a call from MTN to Voda and Vice-Versa. When Cell-c entered and in fear of the new operator dropping call charges and starting a price war they raised the interconnect rates to almost R1-10 per minute. That meant a new operator could not offer rates below R2 per minute. Cell-c had to do just that. Now neotel is entering the market and Telkom has artificially raised the interconnect rates to levels not seen anywhere. This means that neotel will have to charge high call rates to Telkom and others that have high interconnect rates. I was just pondering on this idea. Please get this message to as many people as possible.

Neotel : New fixed operator

Cell-C : New mobile opertor

Vox : New Voip Provider

MWEB : New voip Provider

Internet Solutions : New Voip operator

Iburst : Wireless broadband Voip provider

Virgin Mobile : New MVNO

If these guys got together and sat at a round table and bring their homework with them eg. Cost to carry calls from internet to POI.
Cost to carry calls from mobile to POI.
Cost to carry calls from fixed top POI.

( Point of Interconnection )

And created the proper low cost based mutually beneficial interconnect rates. We could have the DAVIDS bring down the Gloiaths.

All peak time examples below for one minute:

Lets say a call from Neotel to Cell-C costed R0-55c to the consumer
Lets say a call from Cell-C to neotel costed R0-72c to the consumer
Lets say a call from Vox to Cell-C costed R0-50c to the consumer
Lets say a call from Virgin to Vox costed R0-65c to the consumer
Lets say a call from Vox to internet Solutions costed R0-10c to the consumer

Guys and dolls these companies would take off because of the low call rates and people would start to talk about it. And if consumers were educated properly what is going on. The Goliaths Bottom line would affected so badly that they will be forced to play the game or sit on the bench.

Vox - Neotel - Internet Solutions - Mweb - Virgin - Cell-C - Iburst

Do sum serious negotiating and make South-Africa happen.

DXL - Team

Freedom 4 all in the World - Wide - Web
 
@DXL, I suspect it was Telkodemonopolies that started charging more for its interconnect lines that Vodacom & MTN etc rent from Telkodemonopolies, and that resulted in the price increase being passed on to consumers.
 
@DXL, I suspect it was Telkodemonopolies that started charging more for its interconnect lines that Vodacom & MTN etc rent from Telkodemonopolies, and that resulted in the price increase being passed on to consumers.
Err ... I think not. Vodacom for example reported their interconnect revenues for the last 6 months were R 4.3 Bil. I would be suprised if Telkom line costs for all interconnect traffic were 2% of that (15 Mil p/m).

Pure profit motive as far as I'm concerned.
 
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