Total regulatory failure

[rpm]

Total regulatory failure, says ECN

‘If the mobile operators are charging interconnect fees that are not cost based the conduct is unlawful and must cease immediately’

 

[The_Unbeliever]

Let them simmer in their own stew. It brings out the flavour.

 

[tjunyat]

Go ECN, stick it to "the man"!
Anything that brings the costs down for the consumer should definitely be supported by the community!

 

[PPJ]

Wow

This is fasinating!!

It now seems possible that the operators can come up with any figure as to what their cost really is to terminate, and who can really question them....?

Are there any one on here who has the ability/knowledge/experience/etc to guess what the real cost is to terminate a incomming call into a network

A extremely over simplified way would be to say the cost to terminate one call will be the same as to terminate 10 000 or 1 000 000 calls, but I think most of you get my drift, so see this statement for what it is worth, a question!

What is this cost really? If there was nothing sinistre about it why is there such a hacking about it.

 

[guest2013-1]

This is fasinating!!

It now seems possible that the operators can come up with any figure as to what their cost really is to terminate, and who can really question them....?

Are there any one on here who has the ability/knowledge/experience/etc to guess what the real cost is to terminate a incomming call into a network

A extremely over simplified way would be to say the cost to terminate one call will be the same as to terminate 10 000 or 1 000 000 calls, but I think most of you get my drift, so see this statement for what it is worth, a question!

What is this cost really? If there was nothing sinistre about it why is there such a hacking about it.

They could, but if they complied with the regulations ICASA should have their real costs on file. I guess it's just a bribe or two away when ICASA states they lost the information.

ICASA is the ultimate "regulator" to make sure stuff don't happen, re the market assessment they want done now... 2004...

Now look at how long it took Neotel... since 2001... ICASA loves their retention bonuses as much as the next guy.

If the ANC government wants to micromanage, I suggest they start with them.

Cheaper communications means an influx of call centers which in turn would generate jobs and investment in this country... more money the guvva-mint can get to then spend on their luxury cars (or perhaps a bit on medical or policing)

 

[Lightscribe]

Interconnect: ‘the real story’

 

[grok]

'Cos its looking more and more that were in effect stealing from the consumer. They used interconnection rates in an anti-competitive way, to try & keep out the competition. They lied about it then and still continue to lie about it.

Interesting that ICASA was supposed to enforce the regulations but they didn't - another fail for them.

 

[moosag]

Stick it to them ECN! This whole Interconnect thingy is getting quite interesting I must admit.

Personally I say fine Vodacom & MTN for such high interconnect costs! Like R50m each! Then I want to see them fight it in court. And if they decide to bring out the lawyers fine them another R100m on top of the R50m.

Its about time things change around here. Enough lip service and spin doctors. Bring out the knives baby!

 

[RoganDawes]

This is fasinating!!

It now seems possible that the operators can come up with any figure as to what their cost really is to terminate, and who can really question them....?

These Regulations require that the mobile operators file revenue and cost information for interconnection charges with ICASA so that ICASA can ensure that the charges are cost based (sub regulation 2.3) and based on the operations of an efficient operator (sub regulation 6.3).

Bold added.

 

[Vrotappel]

Icasa failed? //falls of chair

 

[yavahn]

Meh...

 

[Fantastic1]

Stick it to them ECN! This whole Interconnect thingy is getting quite interesting I must admit.

Personally I say fine Vodacom & MTN for such high interconnect costs! Like R50m each! Then I want to see them fight it in court. And if they decide to bring out the lawyers fine them another R100m on top of the R50m.

Its about time things change around here. Enough lip service and spin doctors. Bring out the knives baby!

this is true - and Go ECN Go ECN Go

 

[mikef]

This is fasinating!!

It now seems possible that the operators can come up with any figure as to what their cost really is to terminate, and who can really question them....?

Are there any one on here who has the ability/knowledge/experience/etc to guess what the real cost is to terminate a incomming call into a network

A extremely over simplified way would be to say the cost to terminate one call will be the same as to terminate 10 000 or 1 000 000 calls, but I think most of you get my drift, so see this statement for what it is worth, a question!

What is this cost really? If there was nothing sinistre about it why is there such a hacking about it.

There can be no simple answer as to what the cost of call termination is. When you are expressing termination cost as a per call amount it will obviously not only differ from one operator to the next but also within an individual operator between individual base stations and call routes.

I am sure VC and MTN would be able to justify any amount - including the current levels. As they say you can prove just about anything with statistics - just depends on your POV.

At the end of the day does it even matter considering the net effect of a symmetrical MTR remains for all practical purposes ZERO

 

[kilos]

Did MTN report a profit due to Interconnect Fees ?

 

[Lightscribe]

In the 2009 financial year, Vodacom's South Africa business generated R8.6bn in revenue from interconnection, an increase of 8.6% from the previous year. Interconnect is its second-largest source of total revenue (R47bn), after airtime and access (R25.7bn).

It paid Telkom R462m in interconnect fees, while receiving R2.96bn in interconnection payments from the fixed-line operator.

Vodacom, however, does not itemize its direct network operating costs (which includes interconnect) per country. Across the group, it posted R9.79bn in interconnect revenue, with R6.95bn in so-called "interconnect" costs. This would include interconnect payments to other operators, as well as the "true cost" of interconnect.

MTN South Africa, by contrast, generated R6.95bn in interconnect revenue in 2008. Its interconnect and roaming costs totaled R5.14bn. This means a net profit of R1.81bn on interconnect. But MTN admits that "although interconnect revenues were up in the year, the proportion of these to total revenues is gradually decreasing, dropping to 20% in 2008 from 22% in 2007". http://www.moneyweb.co.za/mw/view/mw/en/page292671?oid=322776&sn=2009 Detail&pid=287226

and

What Vodacom and MTN earn through interconnect

For the financial year ending 31 March 2009 Vodacom generated R 8 632 000 000 through interconnection in South Africa, up from R 7 945 000 000 a year ago. This is the company’s second largest revenue stream after ‘airtime and access’, and is far higher than the R 5 973 000 000 generated through data services (SMS, MMS & broadband) or the R 5 190 000 000 from equipment sales.

MTN generated R 6 951 000 000 in interconnect revenue for the financial year which ended December 2008, up from R 6 346 000 000 for the previous twelve months. As is the case with Vodacom it is also the second largest revenue generator for the MTN behind airtime and subscription revenue.

MTN’s interconnect revenue is in fact more than its data and SMS revenue (R 3 596 000 000) and cellular telephone and accessories sales (R 3 122 000 000) put together. http://mybroadband.co.za/news/Business/9561.html

 

[mikef]

Vodacom, however, does not itemize its direct network operating costs (which includes interconnect) per country. Across the group, it posted R9.79bn in interconnect revenue, with R6.95bn in so-called "interconnect" costs. This would include interconnect payments to other operators, as well as the "true cost" of interconnect.

Wonder what Hilton considers the "true cost" of interconnect is - my understanding is that interconnect costs only consists of amounts paid to other operators?

 

[PPJ]

Thank you for that "lightscribe"

That tells me the real cost to interconnect is just about nothing AND
the inflated part is pure profit. Sure I would also hack about loosing some part of that........

It just goes to show how "We" are still used to say "Ja memeer", "Goed Meneer" and "Dankie meneer" for screwing me meneer. We are still been prescribed to (as in the apartheid years) and we still accept it.

It is never the fool asking the price..... Its the fool paying the price!!!

 

[Speedster]

Wonder what Hilton considers the "true cost" of interconnect is - my understanding is that interconnect costs only consists of amounts paid to other operators?

The true cost has nothing to do with the amounts paid to other operators. It is the cost incurred in terminating a call on the network. The amount recovered from the other operators should then cover this cost.

 

[mikef]

The true cost has nothing to do with the amounts paid to other operators. It is the cost incurred in terminating a call on the network. The amount recovered from the other operators should then cover this cost.

And you believe it is included in the amount referred to by Hilton?

 

[Speedster]

If Vodacom's bean counters were any good, it should.