Comments on: Cellular operators agree to cut interconnection rates

By: Allen Baranov

Allen Baranov — Fri, 13 Nov 2009 08:24:16 +0000

@Richard

If you read other articles on TC, you’ll see that no-one actually knows what the cost price for making a call actually is. And even if the networks did know – they won’t share the information.

So, the above figures are based on a “write your figure on a piece of paper and slide it across the desk to me and I’ll write my figure on a piece of paper and slide it to you.”

By: Satriani

Satriani — Thu, 12 Nov 2009 19:12:20 +0000

Hi Richard – Capacity on the network is different for peak and off-peak. The network generates higher costs when capacity is increased i.e transmission,spectrum,est.

By: Richard

Richard — Thu, 12 Nov 2009 16:46:53 +0000

If these interconnect fees are supposed be the COST of terminating a call on their network, as I think the law dictates, why do we distinguish between off and on peak rates? Won’t they have the same associated cost?

By: Gary Meyer

Gary Meyer — Thu, 12 Nov 2009 15:50:20 +0000

@Rob Ah.. it’s all starting to make some sense now. Thanks.

What are we being charged for then when making calls to other subscribers on the same network as us?

By: Rob Lith

Rob Lith — Thu, 12 Nov 2009 15:36:19 +0000

Gary, it’s billed per second. What’s disappointing is that folk still don’t seem to get it that if there are almost equal calls between operators there is effectively a low settlement amount between them. It only really affects new competition that will have more calls going to the players with significant market power and it created a barrier to entry for them.

By: Gary Meyer

Gary Meyer — Thu, 12 Nov 2009 15:22:18 +0000

If an interconnect rate is the fee charged by one operator to another to terminate a call on its network, then why is it charged at a per minute rate? Surely it’s a once off fee at the end of the call.. terminating that call?

Or am I misunderstanding this?

By: Satriani

Satriani — Thu, 12 Nov 2009 15:20:28 +0000

This is great news. It may not be the 60cents that we were all hoping for,but at least it is a start. Agree with Garth on the offpeak but hey what can we do! the incumbents still have a very strong power base! Lets just hope that that us poor consumers will eventually see some of the rate drop translate into lower cellular rates!

By: Garth Michel

Garth Michel — Thu, 12 Nov 2009 15:06:47 +0000

Wow, just wow. Once again Vodacom and MTN get their way. I can’t believe the off-peak wasn’t even touched.

It amazes me how incompetent ICSA really is.