ICASA has published revised call termination rates to take effect on 1 October 2014. As of 2017 the cost of connecting a call to a number on the network of a large operator (MTN or Vodacom) will R0,08 which is a far cry from the near criminal R1,25 which pertained for more than a decade after the introduction of mobile telephony in 1994. Two aspects of the proposed rates struck me as interesting.
The “asymmetric” rate is also a strange beast. Telkom Mobile will be able to charge more for terminating calls from other networks because it is a smaller mobile operator and the mobile and fixed-line network markets are considered separately for this purpose, which is really just silly. ICASA could have solved the so-called problem of asymmetry by setting the termination rate to zero but at least a positive rate creates an incentive for the operators to report reasonably correct data...
- From 1 March 2015 there will no longer be any difference between the mobile and fixed-line termination rates, except for the “asymmetric” rate for small operators. The means that there is no reason to delay the introduction of full mobile-fixed number portability. If it gets that far, businesses and consumers will be able to take geographic numbers starting with 012/011/021 and so on to a mobile operator for cellular service. In my view, cellular operators should be allowed to provide service on geographic numbers (as Neotel is doing already) without delay.
- Many people still have a Telkom line because of the fixed monopoly operator's unlimited calling plans to geographic numbers. When mobile and fixed-line termination rates are equal, how will consumers react when we see more and cheaper mobile packages with unlimited minutes? Can one expect a further erosion of the Telkom subscriber base and would this be a favourable outcome for a Telkom that might be interested in dumping its consumer copper network?
The “asymmetric” rate is also a strange beast. Telkom Mobile will be able to charge more for terminating calls from other networks because it is a smaller mobile operator and the mobile and fixed-line network markets are considered separately for this purpose, which is really just silly. ICASA could have solved the so-called problem of asymmetry by setting the termination rate to zero but at least a positive rate creates an incentive for the operators to report reasonably correct data...
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