Cell C proposes 75c and 65c interconnect rates

MTR cuts:

In favour - CellC, Telkom, Neotel, everyone else

Against - Vodacom, MTN. no-one else!!
 
Charge everyone the same.

Vodacom and mtn are major players because they invested the most. They also invested first. I don't see how it would be fair to penalize them for this.
 
"we are in favour of an immediate move to an all-day mobile termination rate of 75 cents for the dominant mobile players and 65 cents for the mobile challengers"

I like the fact that it is not time based. Why the different rates for different times of day for termination anyway? I assume it is because of capacity costs, but a different rate still does not make sense based on cost...
 
moggie said:
MTR cuts:

In favour - CellC, Telkom, Neotel, everyone else

Against - Vodacom, MTN. no-one else!!
Click to expand...

Are Cell C in favour of a symmetrical MTR - they want it skewed to benefit themselves
 
mikef said:
Are Cell C in favour of a symmetrical MTR - they want it skewed to benefit themselves
Click to expand...

Yeah, and the odd thing is its very likely even with a 10 cents advantage they will probably never become a major player. So they will enjoy the advantage forever.

The gamesmanship is enjoyable to watch though. We have been hearing from MTN and VODA, and we all know where their interests lie. It's nice to have someone on the other side of the fence.
 
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Telkom has been subsidising vodacom and mtn for years (lower mtr). Now it is mtn and vodacom's turn. Cell C is actually very deserving,as they have had and still do have some tariff (on-net) specials. Would voda or mtn ever give 60 minutes for free over weekends... I have a post-paid contract with each of them and had least billing issues with cell c. Network investment? i do not have 3g most of the time and live in an affluent suburb. Give cell c what they want,they actually try to keep call costs down
 
Cell C has 10% market share - all things equal 90% of their calls are terminated on other networks which is why they've been unable to compete.

Make MTR assymetrical until a player holds 20% marketshare. then they go to higher rate as well.

Force all networks to open up for MVNO's - with lower assymetrical MTR they will prosper and bring prices down.

Vodacom and MTN argument that they have a mandate to bring cellular to all areas is not valid anymore - they've had their chance and only put up masts if its viable, which is fine - but don't use to defend high MTR's.

They also argue that it might impair their ability to provide broadband, they have the best market conditions for providing broadband with Telkom keeping prices so high. No need to give them continued unfair advantage over Cell C and other broadband providers.

We have 100% penetration of mobile in SA - the competition which was envisaged with Cell C needs to be kickstarted asap.
 
we are in favour of an immediate move to an all-day mobile termination rate of 75 cents for the dominant mobile players and 65 cents for the mobile challengers
Click to expand...

The MTRs should be determined based on the costs. Icasa had to complete its process, but could speed it up
Click to expand...

Those two seem to contradict themselves when you consider 'cost' prices estimated quite a while ago. While the cost remains the same throughout the day its pretty much like telephone costs during the day peak/off peak .. the links/connections are limited in size so it has to be charged accordingly to prevent saturation and/or upgrades
 
moggie said:
Sorry for derail: I'm not a 'great believer'. Compare apples and apples.

Do you hold VC/MTN shares?
Click to expand...

No - but if I did I would be selling them and buying Telkom shares:)

I just do not believe that if something was wrong you correct it by a second wrong. That said I do not know enough to be sure that there are not good grounds for such an asymmetrical dispensation that Cell C wants - my initial reaction is just that it feels wrong.
 
PeterP said:
Cell C has 10% market share - all things equal 90% of their calls are terminated on other networks which is why they've been unable to compete.

Make MTR assymetrical until a player holds 20% marketshare. then they go to higher rate as well.

Force all networks to open up for MVNO's - with lower assymetrical MTR they will prosper and bring prices down.

Vodacom and MTN argument that they have a mandate to bring cellular to all areas is not valid anymore - they've had their chance and only put up masts if its viable, which is fine - but don't use to defend high MTR's.

They also argue that it might impair their ability to provide broadband, they have the best market conditions for providing broadband with Telkom keeping prices so high. No need to give them continued unfair advantage over Cell C and other broadband providers.

We have 100% penetration of mobile in SA - the competition which was envisaged with Cell C needs to be kickstarted asap.
Click to expand...

well said!!!!
 
Vodacom pays MTN 50 mill interconnect fees...
MTN pays Vodacom 50 mill interconnect fees...
CellC pays MTN 30 Mill ic costs...
CellC pays MTN 30 Mill ic costs...
Cellc Gets 5 mill ic costs...

PRICE FIXING!!!!
Geez i cannot see how you guys still support this!!
 
Maybe if Cell C had invested in their network then they would have more than the 10% market share they have now. I'm currently a subscriber on the cell c network and about 90% of the time i am connected to a non cell c tower. this is in durban. No 3g coverage, no coverage in many areas, etc. All of this is what keeps people away. We all know they are just another cell company and are gonna charge us maybe 1-2 cents a minute more or less than VC/MTN so cost is not what is keeping people away.

Now before the ahh shame crowd gets on the band wagon, They have been running for a good couple of years now, did they not have a plan on how to grow the network with their finances sorted before this? If not then thats just bad planning on their part. They should have looked at the market, known how carpy ICASA was and seen what the dominant players were getting away with. That done they would have known something like the MTR hike was gonna happen and planned for it.

The fact remains that they probably did nothing like that and have invested as little as humanly possible in their network because they care even less than the big 2 do wrt their customers.

If I even hear of a 3g tower being set up in poffadder I will revise this theory, but they just dont have a clue, they just upset that their big plan to also rake in the millions isnt working so well.
 
I say take a low rate of say 15c per minute and make that an all-day all-operator rate.

The interconnection rate is there to ensure that one operator does not use the network of another like a parasite or spam. As soon as there is costs involved (even only a little) then it will stop the parasitic use.
 
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