While the cost of terminating calls on mobile networks was reduced in March, price cuts from Telkom and Neotel don’t appear to have kept pace.
South Africa’s regulator, the Independent Communications Authority of South Africa (ICASA), has instituted a 3-year “glide path” for voice interconnect rate reductions which comes into effect on 1 March every year until 2013.
This year’s price cuts saw the peak regulated rate decrease from 73c to 56c, while the off-peak rate went from 65c to 52c. Next year the process comes to an end when the peak and off-peak regulated rates both become 40c.
ICASA’s regulations also make provision for a so-called “asymmetric allowance” which lets smaller players such as Cell C and 8ta charge other operators more for terminating calls on their networks. This year that allowance was lowered from 20% to 15%, and will decrease to 10% next year.
When this year’s new termination rates came into effect Neotel was first to respond with price cuts, announcing its new rates on 1 March 2012. Reductions ranged from 4% to 23%.
Telkom’s new rates were recently announced and will apply from 1 August 2012.
The table below compares the reductions offered by both Neotel and Telkom against the reduction in termination rates mandated by ICASA.
|Telkom and Neotel to mobile per-minute pricing compared|
|Operator and destination||Old||New||Adjustment|
|Mobile termination rate||R0.73||R0.56||-23%|
|Neotel to Cell C/8ta/Virgin||R1.368||R1.05||-23%|
|Neotel to Vodacom/MTN||R1.083||R1.05||-3%|
|Telkom to mobile||R1.40||R1.35||-3.6%|
|Mobile termination rate||R0.65||R0.52||-20%|
|Neotel to Cell C/8ta/Virgin||R1.0944||R0.93||-15%|
|Neotel to Vodacom/MTN||R0.969||R0.93||-4%|
|Telkom to mobile||R1.122||R1.08||-3.7%|