Vodacom comments on potential interconnect losses

[wikus]

Will we benefit in any way from the drop in interconnect rates if the mobile operators can't be forced to drop their call prices?
Won't they just go on as usual with all prices staying the same and with termination rates then only making out a smaller portion of the call rate?
Basically an increase in call rates to make up for the loss of profit from termination rates

 

[GuileX]

guys you all will be affected by Vodacom taking a hit. It affects investments and could result in a weaker rand.

something they should have thought about a long time ago, this could all been avoided why are interconnect rates being challenged now why not 10 years ago?

Interconnect rates should have started with this rate after 10 years they have made billions and billions, weaker rand will be because of poor presidency, poor management, and because we are living in a AA land where the apes rule. Go planet of the apes!!!! go go go

 

[BBotha]

Ag Shame

I guess they can get some money back by cutting sport sponsorship. We really don’t need all our teams to be Vodacom this and Vodacom that.
Vodacom Blue Bulls
Vodacom Cheetahs
Vodacom ….

 

[Zone]

.....and the public stand to gain a billion rand!!

The cell phone companies should bear in mind that the interconnect fees were forced on the public by them in the first place. What about the billions of rands that were previously milked from the public. They should be thankful that theye were able to get away with charging these extortionate fees for so long. Also that the interconnect fees are way above the actual cost of providing an interconnect - where is the value to the customer?

Furthermore, these fees have ensured that no competition has been able to
really get off the ground.

 

[Zone]

guys you all will be affected by Vodacom taking a hit. It affects investments and could result in a weaker rand.

Do you perhaps work for Vodacom??

High interconnect rates skew the market in that they inhibit competition. Lower the interconnect rates drastically and see what more competition would then do.

A high interconnect rate is just a gift to the cell companies. They are receiving income for a service that they are not providing. Charge us what it actually costs them to provide it.

 

[GuileX]

If anyone has shares in vodacom rofl tough ****.

 

[cda]

Vodacom stands to lose a billion Rand in profit if Parliament gets its way

An ode to Vodacom:

You were my sun
You were my earth
But you didn't know all the ways I loved you, no
So you took a chance
And made other plans
But I bet you didn't think that they would come crashing down, no

You don't have to say, what you did,
I already know, I found out from him
Now there's just no chance, for you and me, there'll never be
And don't it make you sad about it

You told me you loved me
Why did you leave me, all alone
Now you tell me you need me
When you call me, on the phone
Girl I refuse, you must have me confused
With some other guy
Your bridges were burned, and now it's your turn
To cry, cry me a river
Cry me a river-er
Cry me a river
Cry me a river-er, yea yea
~ Justin Timberlake

 

[krycor]

so.. where are the okes that said its a zero sum game.. :erm: I guess this answers AKC's thread too.

 

[mikef]

so.. where are the okes that said its a zero sum game.. :erm: I guess this answers AKC's thread too.

Only a zero sum game if interconnect rates are symmetrical - with the current position VC's loss is Telkom's gain. The customer however does not benefit unless Telkom passes some of the gain back to the customer.

 

[ngwenyas]

Didn't VC had Shaggy (the singer) as a year end party enternainer a few years ago? We'll after this, they will STILL be able to afford him

That is how much $$ they make!

Maybe mzambiya or msawawa (kwaito stars) lol lol lol
they'll probably have tea and coffee 4 drinks

 

[MoHaG]

Who is the largest shareholder in Vodacom?

Then we know who is pushing so hard for this R1billion to be clung to so desperately...

It's so weird, that a greedy company, that raped it's clients, is now begging, to be allowed to continue doing so...

Vodafone (65%)
Public (35%)

 

[Paul_S]

I feel that if Vodacom and MTN have their way and the interconnect rates are not dropped then Telkom should be able to INCREASE their interconnect fees to match the mobile operators.

Why the hell should Telkom customers be forking out money so that Vodacom can make huge profits?! It's time that MTN and Vodacom customers pay Telkom what is due.

This whole asymmetric termination rate issue is bull.

 

[zamicro]

WTF cares? So instead of making 20 billion you will make 19.
What a crock of sh 1T

+1

 

[zamicro]

200 million rand loss per month on interconnect?

WTF?

Just last month they were telling us that interconnect rates have a zero-rated effect.

Now we're supposed to believe them?

Bwaaahahahahahahaha.

I would send the CEO an SMS that reads:
Bwaaahahahahahahahahahaha

But, @ 80c for the SMS, it would be cheaper to write it on a piece of paper(5c), wrap the paper around a brick(65c) and throw it through his window.

When was the last time you bought a brick?

 

[zamicro]

The interesting fact is that if my understanding is correct the predicted reduction of profits of R1bil is before any reduction in the retail tariffs charged to VC's customers. This loss would be mainly attributable to the reduction in the difference between the asymmetrical rates between VC and Telkom and would result in a benefit to Telkom of a similar amount - hopefully Telkom would pass some of this benefit on by reducing the cost of landline calls to the mobile networks.

A reduction of VC's retail tariffs by a amount corresponding to the desired interconnect reduction would I suspect decrease their profits by multiples of the R1bil.

Telkom has nothing to do with this. This is about MOBILE Termination rates. (Although, thinking about it, Telkom will score. They will pay less to the mobile networks,)

The big winner will be CellC as they are a net payer at the moment.

 

[zamicro]

Will we benefit in any way from the drop in interconnect rates if the mobile operators can't be forced to drop their call prices?
Won't they just go on as usual with all prices staying the same and with termination rates then only making out a smaller portion of the call rate?
Basically an increase in call rates to make up for the loss of profit from termination rates

You are 100% correct. But at least it will open the door for one of them to try and grab a bit of the market by lowering their prices. The rest will then have to follow.

 

[mikef]

Telkom has nothing to do with this. This is about MOBILE Termination rates. (Although, thinking about it, Telkom will score. They will pay less to the mobile networks,)

The big winner will be CellC as they are a net payer at the moment.

Incorrect on both accounts (at least you have the reason right why Telkom will benefit) - as has been pointed out numerous times Telkom is the big beneficiary and Cell C is not a net payer so they will also lose out when the rates come down.

The prime reason for VC's current net receipt of interconnect is the asymmetry between the rates they pay Telkom and the rate they receive from Telkom. If not for this interconnect would largely be a "zero sum game".

 

[mikef]

You are 100% correct. But at least it will open the door for one of them to try and grab a bit of the market by lowering their prices. The rest will then have to follow.

You are right in this - just remember that a drop in MTR will not bring about a net decrease in costs for any of the existing mobile operators (in fact the opposite is true in that their profits will go down without any reduction in retail tariffs) - therefore any drop in retail price will have to be funded by additional reduction in profits.