MTN & Vodacom agree to cut blended interconnect rate to 78c per minute

wow... that happened before the 1st of november... I am impressed!

lets hope parly sticks to their guns and reduces it further
 
And as predicted here: no reduction on consumer prices!

/or did I miss something in the press release?
 
consumer price reductions will come... firstly from cellc.. and then from the big guns in response...
 
It was never going to yield any reductions for consumers on the first round.

I am really pleased that some headway has been made.

But what happened to R0.60?
 
Gob-Smacked! :eek: I am sincerely surprised but make no mistake ... thank you!!! :)
 
Voda & MTN duping everyone

The article clearly states bi- lateral agreement.

That to me means only MTN & VODA have agreed to it. Our problem is when everyone else wants to terminate traffic on the VODA & MTN network.

Icasa and doc must push for 60c now and set the rate changes of 15c per year on 1st march for the next 3 years. Final rate to be 15c per minute.

The laws are coming guys.

No turning back now use it or lose it all.

DxL - TEAM
 
Oh dear...

It looks like everyone's fallen for the trick already. Read the other articles, guys - talks broke down with ICASA, and this cut is nowhere near acceptable, even to ICASA, never mind parliament, or consumers. Not only is this a very clever publicity stunt, but it actually also a blatant lie.

Do the sums:

R1,25 less 19% = R1,01 peak rate
R0,77 less 19% = R0,62 peak rate

Now "blend" those two numbers, say 60/40 day/night (which is really quite an unlikely level of night-time calls, but for the sake of argument), and you get:

86c !!!!

To get a figure of 78c, you have to assume that 60% of calls happen at night. Really? Fixed to mobile?

Not only is the number a lie, but they currently offer on-net retail rates below those values on their networks. So much for "cost-based".

Even if they passed on the entire benefit on retail rates (which they obviously won't), you get something like:

Current retail price: R1,50 less 24c (as above), and you'd be paying R1,26. That's still not much of a drop, given everything we've heard to date.

In summary, MTN and Vodacom have cut their interconnection rates by 19%, unilaterally, without agreement from anyone else, not even ICASA, and have made up a number (78c) that they think the public will like to hear. Magnanimous, I'm sure, but it's obviously not going to stop here... Watch this space.
 
zeely said:
consumer price reductions will come... firstly from cellc.. and then from the big guns in response...
Click to expand...

I honestly do not see consumer prices coming down at all.

I wonder what the impact of this agreement will be on Telkom with respect to the rates they pay to terminate on VC and MTN's networks - I guess nothing yet.
 
ushir said:
How is this not collusion?
Click to expand...
it is "legal collusion"

the way the law works is to say that interconnect rates are set by bilateral negotiations between licensees, i.e. precisely what they have done so they have operated within the law
 
ads said:
Oh dear...

It looks like everyone's fallen for the trick already. Read the other articles, guys - talks broke down with ICASA, and this cut is nowhere near acceptable, even to ICASA, never mind parliament, or consumers. Not only is this a very clever publicity stunt, but it actually also a blatant lie.

Do the sums:

R1,25 less 19% = R1,01 peak rate
R0,77 less 19% = R0,62 peak rate

Now "blend" those two numbers, say 60/40 day/night (which is really quite an unlikely level of night-time calls, but for the sake of argument), and you get:

86c !!!!

To get a figure of 78c, you have to assume that 60% of calls happen at night. Really? Fixed to mobile?

Not only is the number a lie, but they currently offer on-net retail rates below those values on their networks. So much for "cost-based".

Even if they passed on the entire benefit on retail rates (which they obviously won't), you get something like:

Current retail price: R1,50 less 24c (as above), and you'd be paying R1,26. That's still not much of a drop, given everything we've heard to date.

In summary, MTN and Vodacom have cut their interconnection rates by 19%, unilaterally, without agreement from anyone else, not even ICASA, and have made up a number (78c) that they think the public will like to hear. Magnanimous, I'm sure, but it's obviously not going to stop here... Watch this space.
Click to expand...

correct. MTN & Vodacom are not your friends people and they are most certainly not acting in your interests.

this is damage limitation - reducing to the highest possible level which they think will sound good (but only after the figures have been spun)
 
Passifier, dummy, just stop bugging us!!

ads said:
Oh dear...

It looks like everyone's fallen for the trick already. Read the other articles, guys - talks broke down with ICASA, and this cut is nowhere near acceptable, even to ICASA, never mind parliament, or consumers. Not only is this a very clever publicity stunt, but it actually also a blatant lie.

Do the sums:

R1,25 less 19% = R1,01 peak rate
R0,77 less 19% = R0,62 peak rate

Now "blend" those two numbers, say 60/40 day/night (which is really quite an unlikely level of night-time calls, but for the sake of argument), and you get:

86c !!!!

To get a figure of 78c, you have to assume that 60% of calls happen at night. Really? Fixed to mobile?

Not only is the number a lie, but they currently offer on-net retail rates below those values on their networks. So much for "cost-based".

Even if they passed on the entire benefit on retail rates (which they obviously won't), you get something like:

Current retail price: R1,50 less 24c (as above), and you'd be paying R1,26. That's still not much of a drop, given everything we've heard to date.

In summary, MTN and Vodacom have cut their interconnection rates by 19%, unilaterally, without agreement from anyone else, not even ICASA, and have made up a number (78c) that they think the public will like to hear. Magnanimous, I'm sure, but it's obviously not going to stop here... Watch this space.
Click to expand...


+100

They are hoping the dust will settle and they can work further on a diiferent angle to screw their customers. I DO NOT trust them!!

They are literally UNTOUCHABLE. Government, DoC, ICASA are all slaves to their product and no one can afford to loose that product, so who's going to say we are going to suspend your license?? No one can!!

Why phase in the reduction.......... what total nonsence!!
 
dominic said:
it is "legal collusion"

the way the law works is to say that interconnect rates are set by bilateral negotiations between licensees, i.e. precisely what they have done so they have operated within the law
Click to expand...

But shouldnt it be between all licensees ?Not just 2?
 
ushir said:
But shouldnt it be between all licensees ?Not just 2?
Click to expand...
i know it is counter-intuitive but no....if it was between all licensees that would be regarded as illegal collusion as there is no legal framework for this and it is essentially all the providers getting together to hammer out a uniform rate - not so good for the consumer and pretty much impossible to get agreement
 
dominic said:
i know it is counter-intuitive but no....if it was between all licensees that would be regarded as illegal collusion as there is no legal framework for this and it is essentially all the providers getting together to hammer out a uniform rate - not so good for the consumer and pretty much impossible to get agreement
Click to expand...

dominic, So in essence... they're colluding not to collude??
 
so basically, if mtn, vodacom, cell-c and virgin all agreed to 78c it would be illegal?
 
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