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
      Gaping holes in South African government cyber defences

      Gaping holes in South African government cyber defences

      2 April 2026
      EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

      EV charging start-up Charge bypasses JSE for token-based raise

      2 April 2026
      Ring, reject, repeat: South Africa's spam call crisis

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

      2 April 2026
      Four astronauts begin humanity's return to the moon - Artemis II

      Four astronauts begin humanity’s return to the moon

      2 April 2026
      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      1 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 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
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 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 » Opinion » Rob Lith » How businesses can cut call costs now

    How businesses can cut call costs now

    By Editor7 September 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [By Rob Lith]

    Holding out for cuts in wholesale mobile termination rates to lower the extortionate cost of mobile communication in SA is a sure recipe for disappointment. If you want to see action, you have to look for a more direct intervention.

    Mobile termination rates are the tip of the iceberg that makes up SA’s mobile call cost structure. According to AfricaNext Research, the differential between peak on-network and off-network airtime prices is less than 20%.

    On-net calls, where users call others on the same network, which don’t include any termination fee, are nearly as high as off-net calls. This means that even if mobile termination rates drop to 40c/minute by 2012 from 89c/minute now, it’s unlikely to have much of an effect on retail prices.

    The hard truth is that call charges are so high because the operators choose to set them so.

    This is not a tenable situation. Businesses are forking out around 60% of their telecommunications budgets on the most expensive calls — to mobile phones. Some 30% are to landline phones, and are not that much cheaper, and only 10% on Internet Protocol (IP) telephony.

    A solution is to migrate voice traffic to the data network for “on-net” calls, terminated at data rates (a fraction of land-line rates), and removing the requirement for on-site least-cost routers. This can immediately save companies about 25% to 28% in mobile termination rate fees.

    Thanks to better wide-area networks and telephony software, call management can be done via a private cloud, or the public cloud supported by an extended management network.

    Adding mobile into IP on-net traffic delivers even better returns. Mobile users can terminate calls using voice-over-IP from mobile-to-mobile or fixed-to-mobile at a few cents each — for example, Internet Solutions and Vox Telecom charge around 17c a call for their mobile voice-over-IP offerings.

    The more phones you can get to talk to voice-over-IP PBXs and gateways, the more this mobile on-net community expands, as well as the accompanying cost savings.

    The result of increasing IP “on-net” traffic is reduced cost of ownership for your telecoms infrastructure, greater flexibility and greater control.

    This “on-net” concept also holds opportunities for the mobile telecoms industry in the IP convergence or substitution market to claw back profit losses from cuts in mobile termination rates.

    By introducing fixed voice-over-IP to cellular telephony and mobile voice-over-IP to fixed telephony, operators will have opportunities to grow on a unified voice and multimedia service experience.

    Mobile number portability has already supported the move of the principal voice relationship away from Telkom’s fixed lines, giving the company or end user more control and choice. Full geographic portability is starting, completing the picture.

    According to Visiongain’s “Mobile VoIP Market Report 2010-2015”, the worldwide mobile “on-net” or voice-over-IP market will grow about 1% to €417bn in 2010. Sales of Internet connections and data services on fixed networks will grow in 2010 by 7% to almost €200bn. Mobile data services such as mobile voice-over-IP are posting even stronger growth: up 16% to more than €140bn. This is clearly where the focus of international business is moving.

    SA has the same potential rate of uptake for IP telephony as international markets, following developed countries where mobile voice-over-IP over Wi-Fi and 3G is taking off.

    BMI-TechKnowledge’s recent research report, “SA Voice Services Market Forecast and Analysis 2009–2014”, forecasts fixed and mobile revenues will grow at compound annual growth rates of 3% and 7% respectively. Voice-over-IP is predicted to be the biggest growth area, with minutes and revenues expected to record double-digit growth figures, albeit off a very low base currently. Time will tell if mobile voice-over-IP will grow as fast here, but it seems very likely, as cost pressures caused by high mobile termination rates are a huge incentive to switch.

    Companies can start to do something about this shift now. The important issue when planning communication systems for the future is to start looking at PBXs that can talk to the mobile, fixed-line and IP layers in one solution, so that alternative voice connectivity methods can be easily made as the market matures.

    Alternatively, companies can just keep on handing over large bags of cash to mobile operators until there’s substantial enough competition in the market to drive retail rates down many, many years from now.

    • Rob Lith is director of open standards telephony company Connection Telecom
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Connection Telecom Rob Lith
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDA names new shadow communications minister
    Next Article Amazon Kindle 3: the TechCentral review

    Related Posts

    The voice gap holding back South Africa's Microsoft Teams users - Rob Lith Telviva

    The voice gap holding back South Africa’s Microsoft Teams users

    5 March 2026
    Communication costs exploding? Telviva has a fix for UK-SA teams - Telviva One

    Communication costs exploding? Telviva has a fix for UK-SA teams

    24 June 2025
    Telviva launches Call2Teams: native voice capability in Microsoft Teams - Rob Lith

    Telviva launches Call2Teams: native voice capability in Microsoft Teams

    17 March 2025
    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
    Gaping holes in South African government cyber defences

    Gaping holes in South African government cyber defences

    2 April 2026
    EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

    EV charging start-up Charge bypasses JSE for token-based raise

    2 April 2026
    Ring, reject, repeat: South Africa's spam call crisis

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

    2 April 2026
    Amazon in talks to buy satellite operator Globalstar

    Amazon in talks to buy satellite operator Globalstar

    2 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}