Telkom prices exorbitant: Vodacom

Telkom still charges Vodacom “exorbitant transmission prices” said CEO of Vodacom, Shameel Joosub, during an interview with SABC News.

Joosub was responding to questions about mobile termination rates (MTRs); particularly about the argument that Vodacom and MTN were themselves subsidised by asymmetric termination rates.

MTN and Vodacom have balked at call termination rate (CTR) regulations introduced by Icasa that would let Cell C and Telkom Mobile charge the larger operators significantly more for placing calls to their customers.

The larger operators have argued that this asymmetry will cost them as much as R1-billion in revenue and took the matter to the High Court.

Telkom CEO Sipho Maseko countered with an open letter in March 2014, saying that Telkom had subsidised Vodacom and MTN to the tune of R50-billion in the last 20 years.

“You claim you will be supporting smaller players, but in reality Telkom has subsidised your business for over two decades,” Maseko said.

Joosub has now hit back in a TV interview, saying that it is not really about Vodacom being subsidised.

“Remember [Telkom has] been charging us exorbitant transmission prices – and still do – for the better part of 20 years,” Joosub said.

He added that “one needs to look at the full story” before making these types of comments.

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Telkom prices exorbitant: Vodacom