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
      Treasury's crypto crackdown is a betrayal of Mandela's promise

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      Gautrain to takes on Uber and Bolt: report

      Gautrain to take on Uber and Bolt: report

      22 May 2026
      Reunert ICT shines as cable slump drags profit - Anthonie de Beer

      Reunert ICT shines as cable slump drags profit

      22 May 2026
      Truecaller pivots with South Africa travel eSim launch

      Truecaller pivots with South Africa travel eSim launch

      22 May 2026
      Three years in, PayShap pivots to merchants

      Three years in, PayShap pivots to merchants

      21 May 2026
    • World
      SpaceX's record-setting IPO is here

      SpaceX’s record-setting IPO is here

      21 May 2026
      The Mythos hacking threat is looking overblown

      The Mythos hacking threat is looking overblown

      20 May 2026
      Vatican confronts the age of artificial intelligence. Edgar Beltrán/The Pillar 

      Vatican confronts the age of artificial intelligence

      19 May 2026
      The walkout that could hit every laptop and AI server - Samsung

      The walkout that could hit every laptop and AI server

      18 May 2026
      Pop star sues Samsung for $15-million - Dua Lipa

      Pop star sues Samsung for $15-million

      11 May 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      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
      Datatec is firing on all cylinders - 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
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
      AI won't fix your culture - it will expose it - Jackie Kennedy

      AI won’t fix your culture – it will expose it

      19 May 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      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
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • 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

    Two telcos, $1-trillion and two very different fintech bets - Vodacom and MTN

    Two telcos, $1-trillion and two very different fintech bets

    21 May 2026
    South Africa's operators can fix Rica - and win big doing it - Contactable

    South Africa’s operators can fix Rica – and win big doing it

    21 May 2026
    Setback for Vodacom in Kenya - Shameel Joosub

    Setback for Vodacom in Kenya

    19 May 2026
    Company News
    How African enterprises can leapfrog the AI infrastructure trap - Huawei Cloud

    How African enterprises can leapfrog the AI infrastructure trap

    22 May 2026
    Inside the BBD Grad Programme: real work from day one

    Inside the BBD Grad Programme: real work from day one

    22 May 2026
    Why your tracking system fails the moment it matters most - Sigfox South Africa

    Why your tracking system fails the moment it matters most

    22 May 2026
    Opinion
    South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

    South Africa is sleepwalking into another AI policy failure

    20 May 2026
    AI won't fix your culture - it will expose it - Jackie Kennedy

    AI won’t fix your culture – it will expose it

    19 May 2026
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026

    Subscribe to Updates

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

    Latest Posts
    Treasury's crypto crackdown is a betrayal of Mandela's promise

    Treasury’s crypto crackdown is a betrayal of Mandela’s promise

    22 May 2026
    Gautrain to takes on Uber and Bolt: report

    Gautrain to take on Uber and Bolt: report

    22 May 2026
    Reunert ICT shines as cable slump drags profit - Anthonie de Beer

    Reunert ICT shines as cable slump drags profit

    22 May 2026
    Truecaller pivots with South Africa travel eSim launch

    Truecaller pivots with South Africa travel eSim launch

    22 May 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}