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
      South African IT spending surging as AI boom lands locally

      South African IT spending surging as AI boom lands locally

      29 July 2026
      Radical rethink for South Africa's national AI policy

      Radical rethink for South Africa’s national AI policy

      29 July 2026
      South African tech's compounding debt problem

      South African tech’s compounding debt problem

      29 July 2026
      Russia charges Telegram founder with terrorism - Pavel Durov

      Russia charges Telegram founder with terrorism

      29 July 2026
      Green light for massive new Cape Town data centres

      Green light for massive new Cape Town data centres

      29 July 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

      TCS+ | A smarter approach to cloud for South African businesses

      28 July 2026
      TCS | How Optasia lends billions to people banks can't see - Salvador Anglada

      TCS | How Optasia lends billions to people banks can’t see

      23 July 2026
      The rands-and-cents case for electric trucks - William Kelly Watts & Wheels with Wills

      The rands-and-cents case for electric trucks

      20 July 2026
      Watts & Wheels S1E7: 'Ferrari's EV breaks the internet'

      Watts & Wheels S1E7: ‘Ferrari’s EV breaks the internet’

      8 July 2026
      TCS | Pick n Pay's Enrico Ferigolli on Penny, the AI that shops for you

      TCS | Pick n Pay’s Enrico Ferigolli on Penny, the AI that shops for you

      2 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 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
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Alan Knott-Craig Cell C Icasa MTN Telkom Vodacom
    WhatsApp YouTube
    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

    Radical rethink for South Africa's national AI policy

    Radical rethink for South Africa’s national AI policy

    29 July 2026
    TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

    TCS+ | A smarter approach to cloud for South African businesses

    28 July 2026
    Vodacom scales back dividend policy to fund growth push - Shameel Joosub

    Vodacom scales back dividend policy to fund growth push

    27 July 2026
    Company News
    Huawei Connect 2026: taking South African AI beyond pilots

    Huawei Connect 2026: taking South African AI beyond pilots

    29 July 2026
    Apple at Work: business technology that works as one

    Apple at Work: business technology that works as one

    29 July 2026
    The infrastructure behind smart account-based recurring payments in South Africa - Pay@ Capitec Pay

    The infrastructure behind smart account-based recurring payments in South Africa

    29 July 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    South African IT spending surging as AI boom lands locally

    South African IT spending surging as AI boom lands locally

    29 July 2026
    Radical rethink for South Africa's national AI policy

    Radical rethink for South Africa’s national AI policy

    29 July 2026
    South African tech's compounding debt problem

    South African tech’s compounding debt problem

    29 July 2026
    Russia charges Telegram founder with terrorism - Pavel Durov

    Russia charges Telegram founder with terrorism

    29 July 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}