Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      How AI agents are reshaping banking in South Africa - Lindelani Ramukumba, Absa

      How agentic AI is reshaping banking in South Africa

      5 April 2026
      South Africa's 5G boom is bypassing rural areas: Icasa

      South Africa’s 5G boom is bypassing rural areas: Icasa

      5 April 2026
      WhatsApp is eating South African operators' revenue

      WhatsApp is eating South African operators’ revenue

      4 April 2026
      DeepSeek V4 to run on Huawei silicon as China builds its own AI stack

      DeepSeek V4 to run on Huawei silicon as China builds its own AI stack

      4 April 2026
      Gaping holes in South African government cyber defences

      Gaping holes in South African government cyber defences

      2 April 2026
    • World
      Amazon in talks to buy satellite operator Globalstar

      Amazon in talks to buy satellite operator Globalstar

      2 April 2026

      Apple plans to open Siri to rival AI services

      27 March 2026
      It's official: ads are coming to ChatGPT

      It’s official: ads are coming to ChatGPT

      23 March 2026
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
    • In-depth
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
    • TCS
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
      Anoosh Rooplal

      TCS | Anoosh Rooplal on the Post Office’s last stand

      27 March 2026
      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      Meet the CIO | Healthbridge CTO Anton Fatti on the future of digital health

      23 March 2026
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
    • Opinion
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Consumers being ‘duped over interconnect’

    Consumers being ‘duped over interconnect’

    By Editor28 August 2009
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    VoxOrion MD Jacques du Toit

    Consumers are being duped into believing that mobile call costs are going to plummet once the country’s cellular network operators begin reducing call termination rates, the fees they charge to carry calls on each other’s networks.

    That’s the view of Jacques du Toit, MD of VoxOrion, a subsidiary of JSE-listed telecommunications group Vox Telecom.

    “What really grinds me is that consumers are being led to believe that there will be a linear drop in retail rates if interconnect rates drop,” he says.

    Du Toit points to the example of Namibia, where that country’s telecoms regulator is forcing down interconnect charges in a phased manner over an 18-month period, from N$1,06/minute to N$0,30/minute. They have already been reduced to $0,60.

    But, says Du Toit, there has no been change in retail rates offered to consumers in Namibia. Incumbent mobile operator MTC’s rates have remained the same, he says.

    If MTC were to reduce its rates in line with the reduction in interconnect fees, it would affect its ability to invest in network expansion and pay for access to the new West African Cable System that will connect countries along Africa’s western coastline with Europe.

    “[Independent Democrats leader] Patricia de Lille and [ECN Telecoms] CEO John Holdsworth are positioning themselves as heroes but the reality of the situation is far from what is being spoken about now,” Do Toit says. Both De Lille and Holdsworth have been vocal on the issue, saying interconnect rates need to come down dramatically.

    But, says Du Toit: “If you take this money off, say, Vodacom’s bottom line, don’t you think there will be an impact on rugby sponsorship, or corporate social investment, and so on?”

    He says interconnect is too high but should not drop by as much as some people want it to. “I don’t think it should drop from R1,25 to 22c. Bring it down to a rand, perhaps.”

    Du Toit feels that a fair rate for interconnect is around 80c/minute, and the rate should be reduced at 5%/year, beginning now, so the mobile operators can find other ways to replace the lost income stream.

    Interconnect should also be symmetrical, meaning all operators pay the same rate, Du Toit says. Currently, the mobile operators benefit from an asymmetrical interconnect with Telkom. The fixed-line operator pays significantly more to send a call from its network to the networks operated by Vodacom, MTN and Cell C than the mobile providers pay to Telkom for a call routed in the opposite direction.

    Du Toit warns that if interconnection rate are forced down too much, the “negative effect will be worse than it would be if the incumbents are protected in the initial phases [of reducing rates]. Protection for new operators is not about price, it’s about access to other services, such as mobile number portability and geographic numbers like 011 and 012 instead of the 087 number range.”  — Duncan McLeod, TechCentral

    Click play to listen to Du Toit chatting to Duncan McLeod about interconnect rates:

    [audio:https://techcentral.co.za/wp-content/audio/jacquesdutoit.mp3]

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C ECN Telecoms interconnection rates Jacques du Toit John Holdsworth MTN Patricia de Lille Telkom Vodacom VoxOrion
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEskom loss ‘result of bad management’
    Next Article Gijima boosted by government contracts

    Related Posts

    Ring, reject, repeat: South Africa's spam call crisis

    Ring, reject, repeat: South Africa’s spam call crisis

    2 April 2026
    TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

    TCS | MTN’s Divyesh Joshi on the strategy behind Pi

    1 April 2026
    Inside MTN's plan to turn its towers into AI hubs

    Inside MTN’s plan to turn its towers into AI hubs

    31 March 2026
    Company News
    Synthesis helps financial enterprises transform with new Gemini Enterprise - Digicloud Africa

    Synthesis helps financial enterprises transform with new Gemini Enterprise

    2 April 2026
    The next churn wave is already in your contact centre conversations - CallMiner

    The next churn wave is already in your contact centre conversations

    2 April 2026
    Mining's problem isn't output, it's execution - Workday

    Mining’s problem isn’t output, it’s execution – Workday

    1 April 2026
    Opinion
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    How AI agents are reshaping banking in South Africa - Lindelani Ramukumba, Absa

    How agentic AI is reshaping banking in South Africa

    5 April 2026
    South Africa's 5G boom is bypassing rural areas: Icasa

    South Africa’s 5G boom is bypassing rural areas: Icasa

    5 April 2026
    WhatsApp is eating South African operators' revenue

    WhatsApp is eating South African operators’ revenue

    4 April 2026
    DeepSeek V4 to run on Huawei silicon as China builds its own AI stack

    DeepSeek V4 to run on Huawei silicon as China builds its own AI stack

    4 April 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}