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
      Eskom lifts load reduction for 140 000 customers

      Eskom lifts load reduction for 140 000 customers

      8 February 2026
      AI chatbots are coming to Apple CarPlay

      AI chatbots are coming to Apple CarPlay

      8 February 2026
      South Africa's stablecoin silence is becoming a policy failure

      South Africa’s stablecoin silence is becoming a policy failure

      6 February 2026
      Every electric car you can buy in South Africa in early 2026, ranked by price

      Every electric car you can buy in South Africa in early 2026, ranked by price

      6 February 2026
      From stocks to crypto, markets reel as AI doubts grow

      From stocks to crypto, markets reel as AI doubts grow

      6 February 2026
    • World
      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
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 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 » Opinion » Alan Knott-Craig » Make or break moment for SA telecoms

    Make or break moment for SA telecoms

    By Alan Knott-Craig24 March 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Alan Knott-Craig
    Alan Knott-Craig

    It is no exaggeration to claim that the coming week will be make or break for affordable mobile communications in South Africa – quite possibly for the next 20 years.

    On 1 April 1994, Vodacom and MTN launched a service in South Africa, a launch brought forward to support the Independent Electoral Commission in managing the first democratic elections in the history of our country.

    Twenty years later, Vodacom and MTN are the dominant telecommunications operators, having eclipsed Telkom with the massive assistance of a R1 asymmetry with Telkom for the first 15 years of their operations.

    On 1 April 2014, a new, bold regulation will constrain the ability of Vodacom and MTN to continue to charge high retail rates. It will do this directly by reducing their termination rates (a de facto floor below which retail tariffs cannot fall) and also indirectly by providing significant pro-competitive support (“asymmetry”) for the smaller operators.

    This asymmetry, although less than a third of the asymmetry granted to Vodacom and MTN to allow their businesses to compete, is still sufficient to provide a fighting chance that will see a long term and sustainable shift in the established duopoly of the past 10 years.

    Such a shift would mean a profound change in retail prices and could deliver enormous benefit to all customers (not just Cell C’s), the South African economy as a whole and, yes, Cell C.

    The legal points will be heard this week and Cell C believes that it is in the interest of the public to be clear about what this fight is about. The bottom line is that even Vodacom and MTN acknowledge privately that reductions in termination rates are fair, reasonable and inevitable. They also acknowledge that their “costs” are far lower than the current termination rate of 40c. In fact, based on Vodacom’s assertions about its retail tariffs it is clear that its true costs are substantially below the 20c that communications regulator Icasa has prescribed from 1 April 2014. If a change is inevitable, the only option left to Vodacom and MTN is to delay – and that is exactly what this fight is about.

    I am proud that our regulator had come up with something that would give consumers and the SA economy a bit of hope for affordable mobile communications in the future.

    As the founding CEO of Vodacom, I know that I had a hand in creating the environment we find ourselves in now. I accept that I helped build an industry dominated by a duopoly.
    At the time, and during the first 10 years of the industry, it was the right thing and the industry was about building high-quality networks. But it should never have lasted this long – the second 10 years of the industry appears to have been more about reaping extraordinary profit than about telecommunications.

    Having said that, I have also made the commitment to fix things as they stand now. When I joined Cell C, the first thing I did was reduce prepaid call rates to bring them in line with contract tariffs, which have traditionally been much lower than prepaid tariffs (and which continues to be the case for the dominant operators).

    Cell C introduced a simple concept: flat rates – one rate that applies to all calls, to any network, at any time, thus taking out the dizzying complexity of the traditional mobile space. And Cell C continues to do that even though we don’t have the scale and financial muscle that our competitors have.

    I have not stopped believing in what I started when I joined Cell C, even while I have been recovering from the stroke I suffered late last year. I am in the final stages of my recovery and should be back in the saddle soon.

    It is my fervent hope that I return to an industry that looks very different from what it has for the last 20 years. I want to come back to an industry that reflects our 20 years of democracy.

    I want to come back to a competitive industry, an industry ready to provide services to everyone, at a good rate.

    I would like the next 10 years of the industry to be about honest, good value service, delivered in a way that consumers understand – a fair price for a good service.

    I believe that 1 April 2014 could prove to be almost as significant as 1 April 1994 – both pivotal moments in the history of our industry and our country.

    • Alan Knott-Craig is CEO of Cell C


    Alan Knott-Craig Cell C Icasa MTN Telkom Vodacom
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSomalia to get 4G/LTE
    Next Article Video stores far from dead, my cousins

    Related Posts

    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
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom leans on Africa growth as SA remains under pressure

    4 February 2026
    Company News
    The skills gap is a thinking gap: why South African employers can't find problem solvers

    The skills gap is a thinking gap: why SA employers can’t find problem solvers

    6 February 2026
    Vox Kiwi Wireless: fibre-like broadband for South African homes

    Vox Kiwi Wireless: fibre-like broadband for South African homes

    5 February 2026
    NEC XON achieves an African first with full Fortinet accreditation - Ian Kruger

    NEC XON achieves an African first with full Fortinet accreditation

    5 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
    Eskom lifts load reduction for 140 000 customers

    Eskom lifts load reduction for 140 000 customers

    8 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 chatbots are coming to Apple CarPlay

    AI chatbots are coming to Apple CarPlay

    8 February 2026
    South Africa's stablecoin silence is becoming a policy failure

    South Africa’s stablecoin silence is becoming a policy failure

    6 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}