Interconnect revenue fot Vodacom and MTN’s

So we are all paying about 15 Billion a year because ICASA cannot protect the consumer.

So over the past few years since the interconnect fee has been up dramatically, it cost south africa (according to my thumbsuck calculator) about R65 Billion.

ICASA, when can we get our money back :(
 
This will also highlight the imbalance in the interconnect tariffs. According to Telkom's 2009 results on their website, they paid R 6 919 000 000 to other operators (mainly cell companies) and only received R2 084 000 000 in return. The difference is R4,8 billion!!!

So if the interconnect tariffs are reduced to below what Telkom currently receives, then they will also be forced to drop prices!
 
I don't care how much it costs them. Government must step in an force them to lower interconnect fees. None of this wait and watch for 2 years will ICASA completely fails at their jobs. It is time to bypass them...
 
They should be fined for price fixing as well. This is sick.
 
pkid said:
I don't care how much it costs them. Government must step in an force them to lower interconnect fees. None of this wait and watch for 2 years will ICASA completely fails at their jobs. It is time to bypass them...
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Careful what you wish for, next thing the government might step in on is dictating the price you can sell your property at for redistribution. ;)
 
What makes you think that if they drop the interconnect rates the price will drop accordingly?
 
So Vodacom and MTN's main revenue stream comes from something that doesn't cost them much if anything at all? An inflated made up charge just to increase profits? Pathetic.
 
This really is sick :mad:

ICASA should have done something about this long ago...

I would also like to see the call rates dropping in line with the interconnection fees... but if they ripped us of for so long without fear or conscience will they actually drop the call rates?

I don't think so...
 
I think im going to be sick, thats horrble number, and to think we pay for that for NO reason, so thats 4/5th profit min, :(
 
The income from the interconnect fees is only one side of the picture. Each operator would also have the corresponding cost of interconnect fees paid to the other operators.

A reduction in interconnect fees does not equate to a reduction in call costs. If these rates are reduced and equalised based on what I have heard VC would be worst effected, MTN less so and Telkom dancing all the way to the bank.
 
mikef said:
The income from the interconnect fees is only one side of the picture. Each operator would also have the corresponding cost of interconnect fees paid to the other operators.
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Exactly this would show a completely different picture, and would prove that these high interconnect charges are there ONLY to squeeze smaller operators out! :sick:
 
Question, correct me if I'm wrong here:
I'm using Vodacom "Talk 120" as price reference

Vodacom to Vodacom (Peak) R 2.10 per min
Vodacom to MTN, Cell C (Peak) R 2.70 per min
Vodacom to Telkom (Peak) R 2.10 per min
(Prices from their website)

If the interconnect price is (currently) R 1.25

Why am I paying R2.10 Vodacom to Vodacom and Vodacom to MTN R2.70
I accept the interconnect charges between Vodacom and MTN/Cell C/Telkom albeit high, but why is the price diff only 60c if I phone Vodacom to Vodacom there should be no interconnect fee?? diff should be R1.25 ???
As the price remains the same whether I call someone sitting next to me (same tower) or on the other side of the country??
 
SaiyanZ said:
So Vodacom and MTN's main revenue stream comes from something that doesn't cost them much if anything at all? An inflated made up charge just to increase profits? Pathetic.
Click to expand...

Well, hold on a second. Let's try a thought experiment.

Imagine that every single Vodacom customer used a pay as you go SIM, and relied on the free 365 day incoming call feature on a R5 recharge voucher to receive free calls.

Whenever anyone wants to call a Vodacom customer, they pick up their telkom line and place the call.

Now, what happens is there are NO interconnect fees?

Vodacom spends millions or billions in setting up the infrastructure and maintaining it, but receives NO income whatsoever (apart from a measly R5 per SIM per year).

Obviously, interconnect fees have a place, but they need to be set at a reasonable rate, one that reflects the real cost to the company of terminating those calls. What that rate is obviously depends on a number of factors, and probably fluctuates a bit based on number of calls originated on the network vs number of calls terminated on the network.
 
SaiyanZ said:
So Vodacom and MTN's main revenue stream comes from something that doesn't cost them much if anything at all? An inflated made up charge just to increase profits? Pathetic.
Click to expand...

Does an incoming call really cost any less than an outgoing call? Its using the same infrastructure.
 
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