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
      Telkom to hike mobile and fixed tariffs from 1 April - Lunga Siyo

      Telkom to hike mobile and fixed tariffs from 1 April

      6 March 2026
      GSMA warns geopolitics could split global mobile standards - Ralph Mupita

      GSMA warns geopolitics could split global mobile standards

      6 March 2026
      iStore prices MacBook Neo at R11 999 in South Africa

      iStore prices MacBook Neo at R11 999 in South Africa

      6 March 2026
      Meta to allow rival AI chatbots on WhatsApp amid EU pressure

      Meta to allow rival AI chatbots on WhatsApp amid EU pressure

      6 March 2026
      MultiChoice pulls the plug on Showmax

      MultiChoice pulls the plug on Showmax

      5 March 2026
    • World
      OpenAI secures $840-billion valuation in latest funding round

      OpenAI secures $840-billion valuation in latest funding round

      1 March 2026

      Stripe mulling bid for PayPal: report

      25 February 2026
      Xbox chief Phil Spencer retires from Microsoft

      Xbox chief Phil Spencer retires from Microsoft

      22 February 2026
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
    • In-depth
      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
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      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 S1E4: 'We drive an electric Uber'

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

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

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

      23 January 2026
    • Opinion
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      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
    • Company Hubs
      • 1Stream
      • 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
      • Mitel
      • 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
      • 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 » Editor's pick » Knott-Craig to Icasa: cut MTRs to 25c

    Knott-Craig to Icasa: cut MTRs to 25c

    By Editor16 May 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Alan Knott-Craig

    New Cell C CEO Alan Knott-Craig says the Independent Communications Authority of SA (Icasa) ought to cut the fees SA’s mobile operators charge each other to carry calls onto their networks to 25c/minute to facilitate further price competition in the telecommunications industry.

    The fees, known as mobile termination rates (MTRs), are being brought down through an Icasa intervention and will reach 40c/minute in peak and off-peak times in March 2013. A few years ago, they were a high R1,25/minute, which critics said the dominant incumbents, MTN and Vodacom, used as a club to keep smaller rivals from competing effectively on price.

    On Wednesday, Cell C announced it was slashing the cost of prepaid voice rates to 99c/minute with per-second billing. Knott-Craig tells TechCentral that “asymmetric” termination rates — where Cell C pays MTN and Vodacom less than they pay it to carry calls between their respective networks — had played a role in its decision to cut the retail tariffs.

    Knott-Craig says he has looked at termination rates in markets around the world that are similar to SA’s and believes termination rates are still too high, despite the sharp reductions in the past three years. He says the 25c/minute rate that applies to calls to community service telephones should be the effective new rate for all calls. Even then, he says, 25c “may be too high”.

    In a statement announcing the reduced prepaid tariffs, Knott-Craig says he wants Cell C to continue to enjoy asymmetric interconnect rates because this would help the company “achieve the scalability we need to compete even more fiercely with the large incumbents”.

    The Cell C CEO, who is the former and founding CEO of Vodacom Group, says it’s a well-known but little-mentioned fact that both Vodacom and MTN benefited enormously from an asymmetric pricing arrangement with Telkom. The fixed-line operator paid the two mobile players far more to carry calls on their networks than they paid for calls terminated in the opposite direction.

    With Cell C’s cuts in prepaid rates — and reductions in post-paid contract voice rates expected to follow soon — Knott-Craig says he hopes “Icasa and government are watching and listening”.

    “MTRs are one weapon regulators have to get more competition in the market.”

    He says any operator with less than 20% market share — Cell C’s share of the market is in the region of 13% — should enjoy beneficial asymmetric termination rates. Anything less than 20% would not have the desired results, he says.

    With “vigilant” competition authorities, Knott-Craig says the “playing fields will be levelled and competition will flourish in the telecoms sector, with Cell C setting the pace”.  — (c) 2012 NewsCentral Media

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


    Alan Knott-Craig Cell C Icasa MTN Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleFraud, billing ‘leakage’ to cost mobiles dearly
    Next Article Price war erupts in SA mobile

    Related Posts

    GSMA warns geopolitics could split global mobile standards - Ralph Mupita

    GSMA warns geopolitics could split global mobile standards

    6 March 2026
    Syria seeks new mobile operator to replace MTN after years of limbo - Ralph Mupita

    Syria seeks new mobile operator to replace MTN after years of limbo

    4 March 2026
    MTN mmWave trials show promise for extending 5G broadband reach - Zoltan Miklos

    MTN mmWave trials show promise for extending 5G broadband reach

    4 March 2026
    Company News
    'You'll want a piece of it': Citroën teases Basalt SUV Coupé

    ‘You’ll want a piece of it’: Citroën teases Basalt SUV Coupé

    6 March 2026
    From Linux chaos to AI precision: the maturation of LSD Open - Neil White

    From Linux chaos to AI precision: the maturation of LSD Open

    5 March 2026
    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
    Opinion
    The AI fraud crisis your bank is not ready for - Andries Maritz

    The AI fraud crisis your bank is not ready for

    18 February 2026
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026

    Subscribe to Updates

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

    Latest Posts
    Telkom to hike mobile and fixed tariffs from 1 April - Lunga Siyo

    Telkom to hike mobile and fixed tariffs from 1 April

    6 March 2026
    GSMA warns geopolitics could split global mobile standards - Ralph Mupita

    GSMA warns geopolitics could split global mobile standards

    6 March 2026
    iStore prices MacBook Neo at R11 999 in South Africa

    iStore prices MacBook Neo at R11 999 in South Africa

    6 March 2026
    'You'll want a piece of it': Citroën teases Basalt SUV Coupé

    ‘You’ll want a piece of it’: Citroën teases Basalt SUV Coupé

    6 March 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}