{"id":88411,"date":"2013-10-07T17:09:55","date_gmt":"2013-10-07T15:09:55","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=88411"},"modified":"2013-10-08T09:04:51","modified_gmt":"2013-10-08T07:04:51","slug":"20c-per-minute-drop-too-steep-vodacom","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cellular\/88411-20c-per-minute-drop-too-steep-vodacom.html","title":{"rendered":"20c per minute drop too steep: Vodacom"},"content":{"rendered":"

Vodacom Group<\/a> CEO Shameel Joosub<\/a> said in a statement today (7 October 2013) that the initial 20c price drop in mobile termination rates proposed by the Independent Communications Authority of South Africa (Icasa<\/a>) is too steep.<\/p>\n

\u201cWe support Icasa\u2019s goal of reducing mobile termination rates, provided that such a reduction is cost-based,\u201d Joosub said. \u201cCuts in mobile termination rates can have a profound impact on both our business and those of our suppliers, franchisees and other stakeholders.\u201d<\/p>\n

For this reason, Joosub said Vodacom supports a managed \u201cglide path\u201d of reductions over several years.<\/p>\n

\u201cWe will be responding to ICASA to make the case that the proposed reduction and glide path, which has an initial drop of 50% in March 2014, are too steep and could have serious negative impacts,\u201d Joosub said.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
Termination rate glide path<\/td>\nTo Vodacom, MTN<\/td>\nTo Cell C, Telkom Mobile<\/td>\nTo fixed, within ON area code<\/td>\nTo fixed, between ON area code<\/td>\n<\/tr>\n
Current<\/td>\nR0.40<\/td>\nR0.44 (10% asymmetry)<\/td>\nR0.19<\/td>\nR0.12<\/td>\n<\/tr>\n
2014 (1 March)<\/td>\nR0.20<\/td>\nR0.39 (95% asymmetry)<\/td>\nR0.19<\/td>\nR0.12<\/td>\n<\/tr>\n
2015 (1 March)<\/td>\nR0.15<\/td>\nR0.33 (120% asymmetry)<\/td>\nR0.19<\/td>\nR0.12<\/td>\n<\/tr>\n
2016 (1 March)<\/td>\nR0.10<\/td>\nR0.26 (160% asymmetry)<\/td>\nR0.19<\/td>\nR0.12<\/td>\n<\/tr>\n
2017 (1 March)<\/td>\nR0.10<\/td>\nR0.20 (100% asymmetry)<\/td>\nR0.19<\/td>\nR0.12<\/td>\n<\/tr>\n
2018 (1 March)<\/td>\nR0.10<\/td>\nR0.14 (40% asymmetry)<\/td>\nR0.19<\/td>\nR0.12<\/td>\n<\/tr>\n
2019 (1 March)<\/td>\nR0.10<\/td>\nR0.10 (0% asymmetry)<\/td>\nR0.19<\/td>\nR0.12<\/td>\n<\/tr>\n
Fixed-line asymmteric termination will remain 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Asymmetry too much<\/h3>\n

Vodacom also took issue with Icasa\u2019s proposed asymmetry in mobile termination rates between large and small cellular operators.<\/p>\n

\u201cAsymmetry means that Vodacom pays more to connect a voice call to someone on Cell C<\/a> or Telkom Mobile<\/a> than these networks pay to connect to someone using Vodacom,\u201d Joosub explained.<\/p>\n

Joosub said that Icasa\u2019s proposal will take the current rate of asymmetry from a 10% differential to rates ranging between 95% and 160% over three years.<\/p>\n

\u201cThe accepted practice worldwide is declining asymmetry for a limited period for new entrants at a fraction of the levels proposed,\u201d Joosub said, adding that they intend to engage with Icasa for \u201ca more reasonable\u201d outcome.<\/p>\n

\u201cWe see this proposed asymmetry as placing Vodacom (and by extension, our customers) in the position of effectively subsidising our competitors,\u201d Joosub said.<\/p>\n

More call termination articles<\/h3>\n

New call termination rates: expect backlash<\/strong><\/a><\/p>\n

New draft call regulations from Icasa<\/strong><\/a><\/p>\n

Telkom says mobile termination rates \u201cunjust\u201d: report<\/strong><\/a><\/p>\n

Wait a minute\u2026<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The initial drop in termination rates from 40c\/minute to 20c\/minute, and asymmetry between large and small operators, is too steep, according to Vodacom<\/p>\n","protected":false},"author":23,"featured_media":74339,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[14],"tags":[355,35,18090,1958,689,41],"class_list":["post-88411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cellular","tag-cell-c","tag-headline","tag-independent-communications-authority-of-south-africa-icasa","tag-shameel-joosub","tag-telkom-mobile","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/88411"}],"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\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=88411"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/88411\/revisions"}],"predecessor-version":[{"id":88431,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/88411\/revisions\/88431"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/74339"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=88411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=88411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=88411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}