CompCom: 'Interconnect rates a classic case of collusion'

well Duh!

Like I said in the other thread.... Vodacom and MTN were already investigated more than ten years ago for price collusion. Like it isn't still happening?
 
extremely odd that it jumped 5 fold when cellc entered the market.
 
I like the way things seem to be going.

I just hope that something fruitful will come of all this. This seems very likely, since government has something to lose through it's Telkom stake if interconnect rates don't get dropped.

The timing of this is all very conspiratorial. The conspiracy theorist in me tells me it has everything to do with Telkom losing out due to interconnect rates, and losing market share at all levels (fixed line, mobile, leased lines, SAT3, etc). Also, a drop in interconnect rates seems almost vital to the success of the 'imminent' launch of Telkom's mobile services.

Also Telkom Media was a dismal failure, with lots of money lost in that venture. It seems when governments own pockets are leaking, they will do anything to plug the leaks, and ensure their pockets start to swell again.

In some way, this bodes well for the consumer, as long as the savings from reductions in interconnect rates are passed on to consumers.
 
If this is a way for government to line their pockets, whilst providing cheaper communication to the masses of South Africa, so be it, +1 for the ANC.
 
ToxicWazte said:
The timing of this is all very conspiratorial. The conspiracy theorist in me tells me it has everything to do with Telkom losing out due to interconnect rates, and losing market share at all levels (fixed line, mobile, leased lines, SAT3, etc). Also, a drop in interconnect rates seems almost vital to the success of the 'imminent' launch of Telkom's mobile services.
Click to expand...

+1
It does seem somewhat coincidental.....

If Telkoms costs are lower, when there mobile service is released, I hope they pass the savings onto they customers.
 
ToxicWazte said:
In some way, this bodes well for the consumer, as long as the savings from reductions in interconnect rates are passed on to consumers.
Click to expand...

I predict (and hope) that if interconnect rates do drop, Cell C will be the first to gain from this, and the first to drop its call rates (due to reduced costs overall), and will see increased subscriber numbers. The knock-on effect of this will be more users on its own network, meaning less off-net calls, which in turn means less interconnect charges, resulting in even further savings.

This will eventually cause MTN and Vodacom to open there eyes to this reality, and hopefully follow suit. However, Cell C will have to launch a 3G/HSDPA service, otherwise it will lose out on the higher end customers, who will not be willing to switch over due to lack of a data service (EDGE just doesn't cut it nowadays).

Meanwhile, Telkom will do well on the data front, with its 7.2mbps HSDPA with HSUPA offerings. Telkom already owns the underlying infrastructure to connect it's base stations, and will offer a superior data service on its very new GSM/UMTS network. Expect to see Telkom increasing its coverage very rapidly, with lots of base station sites acquired already (radio/microwave sites, Wimax sites, the 1000's of exchanges countrywide, etc). Telkom also already has a growing retail distribution network (Telkom Direct shops, possible partnerships with the Post Office negotiated with government).

Telkom has a lot going for it in order to launch a mobile service. The one thing standing in its way is the interconnect rates.
 
saffakanera said:
If this is a way for government to line their pockets, whilst providing cheaper communication to the masses of South Africa, so be it, +1 for the ANC.
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Don't you mean line the Treasury's coffers? That is where the dividends go. If Telkom makes less profit, we as taxpayers, in one way or another, have to make up the shortfall. Part of the DoC's mandate is to be custodian of the state's "strategic" investment in Telkom.

What the DoC has to do, though, is to stop seeing Telkom as an ordinary shareholder would see the company and apply pressure to bring down the cost of telecommunications in South Africa. By doing that, so many other benefits will accrue to the country, and indirectly, the Treasury. The potential rewards would far exceed the reduction in the fixed line monopoly's dividend.
 
They should force no interconnect charge and allow the companies to reclaim the loss via a price increase (ie no price increase or decrease to the clients at the end of the month), then from there competition can lower the price and the market would be much more appealing to other companies to enter.

zeely said:
extremely odd that it jumped 5 fold when cellc entered the market.
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Nothing odd about it, the price went up because Cell C entered in order to try keep them out by making it very expensive for them. Cell C would have to pay the rates to MTN/Vodacom while those two wouldn't have to pay much to Cell C since they didn't have any/many clients.
 
ToxicWazte said:
I predict (and hope) that if interconnect rates do drop, Cell C will be the first to gain from this, and the first to drop its call rates (due to reduced costs overall), and will see increased subscriber numbers. The knock-on effect of this will be more users on its own network, meaning less off-net calls, which in turn means less interconnect charges, resulting in even further savings.

This will eventually cause MTN and Vodacom to open there eyes to this reality, and hopefully follow suit. However, Cell C will have to launch a 3G/HSDPA service, otherwise it will lose out on the higher end customers, who will not be willing to switch over due to lack of a data service (EDGE just doesn't cut it nowadays).

Meanwhile, Telkom will do well on the data front, with its 7.2mbps HSDPA with HSUPA offerings. Telkom already owns the underlying infrastructure to connect it's base stations, and will offer a superior data service on its very new GSM/UMTS network. Expect to see Telkom increasing its coverage very rapidly, with lots of base station sites acquired already (radio/microwave sites, Wimax sites, the 1000's of exchanges countrywide, etc). Telkom also already has a growing retail distribution network (Telkom Direct shops, possible partnerships with the Post Office negotiated with government).

Telkom has a lot going for it in order to launch a mobile service. The one thing standing in its way is the interconnect rates.
Click to expand...

Exactly!! But Cell-c NEEDS to find funds for upgrade to they might not reduce too much in the hopes of funding some of it with the new found savings/funds.

Telkom is a win-win situation, not that they've never been.. but it remains to be seen if they will aggressively and perhaps progressively/pro-actively attack. I mean if they launch just standard services with consolidated billing that's already a win win for many organisations but if they integrate it more with their existing telecoms things then i doubt other cell operators will survive easily. 2ndly the savings will likely be pushed into dev of network so less for them to spend.. another win and i doubt they will drop prices way below market.. so again more funding for their own as phonecalls will also be mostly to telkom landlines too.
 
"proposing that ICASA regulates these prices directly to stimulate competition within the market"
Do they mean, the way ICASA regulated the broadband market and brought down prices ???
 
Seriously? Collusion between the cell companies? You have to be joking! </sarcasm>
And it only took you what, 10 years to figure this out CompCom?
Fire everyone there and hire someone competent for a change.
 
ToxicWazte said:
The timing of this is all very conspiratorial. The conspiracy theorist in me tells me it has everything to do with Telkom losing out due to interconnect rates, and losing market share at all levels (fixed line, mobile, leased lines, SAT3, etc). Also, a drop in interconnect rates seems almost vital to the success of the 'imminent' launch of Telkom's mobile services.
Click to expand...

It has been launched already...
 
A commission representative in turn said that the current fixed and mobile termination rates are an example of “classic collusion amongst mobile operators”.
Click to expand...
And what have they done about it? You know - being that they're the flippin competition commission and all. :confused:
 
MoHaG said:
It has been launched already...
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Yes, but it wasn't a full-on commercial launch. There was/is no major marketing effort, and it doesn't look like they are trying to attract a mass influx of customers.

They've said that they are still reviewing their mobile strategy, and will communicate this to public in due course. So far nothing has come of it.

They're offering 3G services in areas where copper cable theft is rife, or where Telkom hasn't yet deployed wired last mile access technologies (and possibly other areas).

So, for the most part, Telkom Mobile hasn't been launched.
 
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