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
      Dr Google, meet Dr Chatbot - neither is ready to see you now

      Dr Google, meet Dr Chatbot – neither is ready to see you now

      10 February 2026
      A million reasons monopolies don't work

      A million reasons monopolies don’t work

      10 February 2026
      Post Office still faces liquidation risk as policy rift widens - Mondli Gungubele

      Post Office still faces liquidation risk as policy rift widens

      9 February 2026
      SABC says it can't afford to cover the next election

      SABC says it can’t afford to cover the next election

      9 February 2026
      Home affairs' R10 ID fee is forcing companies to rethink identity verification

      Home affairs’ R10 ID fee is forcing companies to rethink identity verification

      9 February 2026
    • World
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 February 2026
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
      Crypto firm accidentally sends R700-billion in bitcoin to its users

      Crypto firm accidentally sends R700-billion in bitcoin to its users

      8 February 2026
      AI won't replace software, says Nvidia CEO amid market rout - Jensen Huang

      AI won’t replace software, says Nvidia CEO amid market rout

      4 February 2026
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
    • In-depth
      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
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • 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
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Icasa hints at Vodacom tariffs probe

    Icasa hints at Vodacom tariffs probe

    By Craig Wilson27 February 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Phonecall-640

    The Independent Communications Authority of South Africa (Icasa) has hinted that on-network calling plans such as the one recently launched by Vodacom could be anticompetitive and may require regulatory intervention.

    Big operators often take advantage of their larger customer bases by offering sizeable discounts for calls made between numbers on their own networks. However, because smaller players can’t match these offers, the practice may come to be regarded as anticompetitive.

    This was certainly the intimation from Icasa on Wednesday. The authority issued a statement to explain its reasons for turning down a request from Cell C to suspend Friday’s cut in mobile termination rates. Cell C wanted an urgent review of the regulations to test their efficacy in promoting competition.

    Termination rates, the fees operators charge one another to carry calls between their networks, have been coming down on a three-year glide path. From a high of R1,25/minute at peak times a few years ago, the rate will drop to 40c/minute on Friday.

    Because operators don’t have to pay these interconnection fees for calls carried on their own networks, they can offer consumers big discounts. This not only encourages consumers to get their friends and family to use the same network, but potentially disadvantages smaller operators which send a higher proportion of calls to rival networks.

    Without naming Vodacom explicitly, Icasa’s statement on Wednesday suggests it may probe the operator’s new Free4Sho on-net calling plan. Free4Sho offers Vodacom customers 57 minutes of free on-network talk time per call after they’ve paid R3,60 (R1,20/minute) for the first three minutes of the call.

    This means Vodacom users can make an hour-long call for an effective rate of just 6c/minute — a figure far below the current termination rate.

    Vodacom spokesman Richard Boorman says it is “hard to understand how offering customers better value could be construed as being negative and not in their interests”.

    But Icasa says it is “concerned that the pricing of an on-net voice call may be below the termination rate, an indication that operators are pricing on-net calls at below the true cost of a call, or that the current termination rates are still considerably too high”.

    Consequently, it intends to conduct a market review to determine whether further cuts in termination rates should follow the 1 March reduction. It is “also conceivable that termination rates should tend towards zero over time”.

    According to Icasa, high termination rates prevent smaller players and new entrants from competing effectively. Instead, they allow large players to offer on-net voice prices that are lower than the off-net calls a smaller player may charge its customers. “This may represent margin squeeze and predatory pricing.”

    Other countries have addressed the problem by imposing flat rates across networks or creating a price floor. Some regulators have also opted to impose anticompetitive penalties on operators found to be pricing in this manner.

    Last month, the French Competition Authority imposed fines of €117,4m on Orange/France Telecom and €65,7m on SFR for anticompetitive practices. It found that the Orange/France Telecom on-net plans threatened the long-term viability of France’s third operator, Bouygues Telecom.

    The competition authority found that allowing unlimited calls to users of the same network was anticompetitive because each operator has a monopoly for all termination on its own network. Cost differences between on-net and off-net calls also don’t justify the substantial retail price difference between them, and smaller operators can therefore only compete with larger ones by offering cross-network benefits which they can ill afford, it said.

    Icasa has attempted to mitigate the benefits enjoyed by large networks by using “asymmetry” in termination rates, where smaller operators pay larger operators lower rates than the other way around.

    Cell C has said it wants to see this asymmetry continued or even strengthened; rival MTN has slammed asymmetry, saying it distorts the market. Alongside the three-year reduction in termination rates, asymmetry fell from 20% to 15% last year and will decline to 10% on 1 March this year.

    Icasa says it will “urgently review the structure of pricing, including transparency in the market, and will examine the necessity for this form of intervention on an urgent basis”.  — (c) 2013 NewsCentral Media

    • Image: Kiwanja/Flickr


    Cell C Icasa MTN Vodacom
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleR1,9bn for SKA, MeerKAT telescopes
    Next Article Why openness must prevail online

    Related Posts

    Vodacom drops R5.6-billion for spectrum in key market

    Vodacom dropping R5.6-billion for spectrum in key market

    9 February 2026
    MTN Group in talks to buy out IHS Towers

    MTN Group in talks to buy out IHS Towers

    5 February 2026
    Vodacom's real growth story isn't mobile

    Vodacom’s real growth story isn’t mobile

    4 February 2026
    Company News
    Xiaomi Redmi Note 15 Series launches with podcast recorded at Tugela Falls

    Xiaomi Redmi Note 15 Series launches with podcast recorded at Tugela Falls

    9 February 2026
    Paratus lights up new East Africa fibre highway linking Goma and Mombasa

    Paratus lights up new East Africa fibre highway linking Goma and Mombasa

    9 February 2026
    The new way of working - an Mweb study

    The new way of working – an Mweb study

    9 February 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

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

    Latest Posts
    Dr Google, meet Dr Chatbot - neither is ready to see you now

    Dr Google, meet Dr Chatbot – neither is ready to see you now

    10 February 2026
    A million reasons monopolies don't work

    A million reasons monopolies don’t work

    10 February 2026
    Post Office still faces liquidation risk as policy rift widens - Mondli Gungubele

    Post Office still faces liquidation risk as policy rift widens

    9 February 2026
    SABC says it can't afford to cover the next election

    SABC says it can’t afford to cover the next election

    9 February 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}