{"id":46180,"date":"2012-04-01T17:38:08","date_gmt":"2012-04-01T15:38:08","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=46180"},"modified":"2012-04-01T17:47:19","modified_gmt":"2012-04-01T15:47:19","slug":"mobile-termination-rates-how-does-sa-compare","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/telecoms\/46180-mobile-termination-rates-how-does-sa-compare.html","title":{"rendered":"Mobile termination rates: How does SA compare?"},"content":{"rendered":"

The Organisation for Economic Co-operation and Development (OECD)<\/a> released its latest report on mobile call termination rates just ahead of South Africa\u2019s most recent rate cuts.<\/p>\n

In October 2010, the Independent Communications Authority of South Africa (ICASA)<\/a> announced new call termination regulations that aim to significantly drop termination rates between 2011 and 2013.<\/p>\n

Called a \u201cglide path,\u201d ICASA prescribed that interconnect rates had to be cut annually over the three year period, with the final price cut set to take effect on 1 March 2013.<\/p>\n

The next reduction in termination rates is to result in equal peak and off-peak rates for mobile and fixed-line calls. From 1 March 2013, the termination rate of mobile calls will be set to R0.40, local fixed-line calls R0.12, and national fixed-line calls R0.19.<\/p>\n

For the moment, however, the termination rates are as follows:<\/p>\n

\n\n\n\n\n\n\n\n
Glide path for termination to a\u2026<\/strong><\/th>\n<\/tr>\n
Location<\/strong><\/td>\nPeak<\/strong><\/td>\nOff-peak<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Mobile location<\/td>\nR 0.56<\/td>\nR 0.52<\/td>\n<\/tr>\n
Fixed location with ON area code<\/td>\nR 0.15<\/td>\nR 0.12<\/td>\n<\/tr>\n
Fixed location between ON area code<\/td>\nR 0.25<\/td>\nR 0.19<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Compared to the mobile termination rates of the OECD nations (using a Rand\/Dollar exchange rate of R7.625\/$), both South Africa\u2019s peak and off-peak termination costs are above the average.<\/p>\n

The graph below shows the ranking of South Africa\u2019s interconnect rates for mobile calls among the 34 countries of the OECD.<\/p>\n

\"OECD

OECD mobile termination - February 2011<\/p><\/div>\n

The OECD reported that while rates have decreased across its member nations by 53% between 2006 and 2011 – from USD 0.1406 per minute in 2006 to USD 0.0650\u00a0per minute in 2011 – there is still much divergence between countries.<\/p>\n

According to the OECD report, the complexity and difference in the way that operators charge fees makes it difficult to draw a link between rates charged and prices paid by users for voice calls in different countries.<\/p>\n

However, cutting rates to zero would strengthen competition in voice and other services, the report said.<\/p>\n

\u201cIt could also speed up the introduction of innovative new VoIP services and encourage providers to offer a range of tariff models to meet the needs of their users, free from prices reflecting monopoly power on the networks of others.\u201d<\/p>\n

Related articles<\/h3>\n

Voice rates: who cut prices and who didn\u2019t?<\/strong><\/a><\/p>\n

Voice call price cuts in SA<\/strong><\/a><\/p>\n

Mobile price cuts? Not likely!<\/strong><\/a><\/p>\n

Interconnect rates, voice prices: what can you expect?<\/strong><\/a><\/p>\n

ICASA suggests aggressive interconnect cuts<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

How does SA\u2019s mobile termination rates compare against the OECD nations?<\/p>\n","protected":false},"author":15,"featured_media":25395,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,3],"tags":[35,10052,10054],"class_list":["post-46180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cellular","category-telecoms","tag-headline","tag-interconnect","tag-termination-rates"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/46180"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=46180"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/46180\/revisions"}],"predecessor-version":[{"id":46430,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/46180\/revisions\/46430"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/25395"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=46180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=46180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=46180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}