The rate for interconnect is zero

E

emmanuel

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Please see http://mybroadband.co.za/vb/showthread.php?t=74980

Therein bekdik makes the following point.

The whole situation would be resolved if ICASA decreed that the rate for interconnect is zero.

If a telco decided that this was unfair, they could remedy the situation by increasing their own call charge. Of course that this may result in their loss of clients is their problem.
Click to expand...

Above is profound in its simplicity and needs more exposure. This is brilliant in it's simplicity and it would put competition and collusion in it's place. :)

I conveyed my view to RPM by email and I'm convinced this should not just be a comment on a forum thread, this should get maximum exposure.

Any ideas how this could be given more exposure?
 
The way I see it. Interconnect is zero for all networks.

Telecos adjust their regular price with what they feel is required to build/maintain their network. Clients won't leave if their network is robust. Example, I didn't move to Virgin Mobile, because I feel Vodacom's network is superior.

Once their network expansion settles and tapers off, they can reduce their price and thereby grow their client base. And so forth.

Telecos that need to build/maintain their network do it from capital with repayments funded from their profits.

With zero interconnect, telecos can adjust their prices up or down as and when they require building/maintaining their network.

Now if they cry ala Telkom (if this or that then we stop providing broadband), let them get out and give another company the opportunity. Same with cell networks, if they cry we won't have capital to build/maintain network--if their network is superior they will keep their clients even if their regular price is a little higher than the other players.
 
It would cripple the smaller networks like CellC, since at the moment they pay out alot in inter-connection fees, but don't receive as much from the larger networks, since they don't have as many calls terminating on their network.

I have often thought about this as well, but it will never happen. The best we could hope for is cost-based inter-connection. If the cost was zero, who would pay for the physical and logistical costs?
 
CodeMaster said:
It would cripple the smaller networks like CellC, since at the moment they pay out alot in inter-connection fees, but don't receive as much from the larger networks, since they don't have as many calls terminating on their network.

I have often thought about this as well, but it will never happen. The best we could hope for is cost-based inter-connection. If the cost was zero, who would pay for the physical and logistical costs?
Click to expand...

But who determines what the cost actually is?
 
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