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 talk radio is now searchable - Locl.co.za

      South African talk radio is now searchable

      28 August 2026
      JSE-listed ICT firm suspended for not paying its own dividend

      JSE-listed ICT firm suspended for not paying its own dividend

      28 August 2026
      Koeberg is completely offline

      Koeberg is completely offline

      28 August 2026
      Anthropic moves AI agents out of software and into the lab

      Anthropic moves AI agents out of software and into the lab

      28 August 2026
      Forget the iPhone: Apple's real next act is your home

      Forget the iPhone: Apple’s real next act is your home

      27 August 2026
    • World
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      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
    • In-depth
      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
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 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.com
      • 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 » Duncan McLeod » Mobile fury

    Mobile fury

    By Duncan McLeod27 February 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Duncan McLeod
    Duncan McLeod

    When major corporate brands start bashing each other over the head in public, you know that commercial rivalry between them has reached an intense level. This is exactly what’s happening in South Africa’s mobile industry, where Vodacom, MTN and Cell C have taken to sniping at each other at every available opportunity.

    The latest attack has been launched by MTN on Cell C. It’s accused its smaller rival of a “serious lack of planning” over its call on the regulator, the Independent Communications Authority of South Africa (Icasa), to postpone this Friday’s reduction in call termination rates so that there can be an urgent review of whether the regulations that govern the rates are proving fully effective.

    Termination rates, also known as interconnection rates, are the fees operators charge each other to carry calls between their networks. When the fees are lowered, it allows smaller operators to compete more effectively on price against larger rivals.

    Icasa has been cutting the rates on a three-year glide path that will see the wholesale per-minute call rate dropping to 40c/minute from a high a few years ago of R1,25/minute at peak times. At the start of the glide path, smaller operators Cell C and Telkom’s 8ta were also given an “asymmetry” advantage, whereby the two operators pay less to terminate a call on the Vodacom and MTN networks than the other way around. That asymmetry advantage was set at 20% in 2011, fell to 15% in 2012, and will fall to 10% this week when the rates are due to be cut again.

    Cell C CEO Alan Knott-Craig, who has set the cat among the pigeons by slashing retail call prices — in the process triggering the current price war — wanted Icasa to postpone this month’s cut in the rates, presumably so he could argue the case for an asymmetry regime that is more favourable than the 10% skew that will take effect on Friday. Cell C met with Icasa last week to press home its case. The authority’s council on Tuesday declined to accede to the operator’s request.

    On Monday, MTN tore strips off its rival over its call for a postponement to Friday’s rate cut. Chief corporate service officer Robert Madzonga said that rather than encouraging small operators to become more efficient, asymmetry just increases larger operators’ costs.

    “It is deeply disturbing that Cell C, the self-proclaimed South African consumer champion, is now asking Icasa to change the law at the last minute so it can keep its mobile termination rates up when the industry was told they would fall years ago,” he said.

    But Madzonga’s comments are a little rich if one considers that for more than a decade both MTN and Vodacom benefited from a highly skewed interconnection regime that allowed the two mobile operators to build their businesses at the expense of Telkom. (If anything, perhaps it’s time for payback as Telkom makes an effort to establish itself as the fourth mobile operator with 8ta.)

    On the other hand, it’s rather brazen of Cell C to have asked for a postponement in the rate cut just one week before it was due to come into effect. The rate cuts and asymmetry levels were agreed to years ago. Why not object earlier, Cell C? The operator’s move does appear rushed, perhaps even a little panicked.

    Nevertheless, these latest developments illustrate clearly just how intense the rivalry has become in South Africa’s mobile industry — and in a short period of time at that. It makes a wonderful change from the 15-plus years of relatively cosy relations and high prices.

    • Duncan McLeod is editor of TechCentral; this column is also published in Financial Mail
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    8ta Alan Knott-Craig Cell C Icasa MTN Robert Madzonga Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWhy openness must prevail online
    Next Article Parliament in formal probe of Pule

    Related Posts

    The hole in the law above the Karoo

    The hole in the law above the Karoo

    26 August 2026
    Blu Label says MTN is coming for its Capitec business - Brett Levy

    Blu Label says MTN is coming for its Capitec business

    26 August 2026
    Blu Label's R46-billion electricity squeeze

    Blu Label’s R46-billion electricity squeeze

    26 August 2026
    Company News
    The stuff that doesn't fit on the quote - Graham Millar SevenC

    The stuff that doesn’t fit on the quote

    28 August 2026
    Can you trust the AI speaking to your customers? - 1Stream

    Can you trust the AI speaking to your customers?

    27 August 2026
    Telviva launches Viva, a digital agent built for South African businesses - Telviva CEO David Meintjes

    Telviva launches Viva, a digital agent built for South African businesses

    27 August 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 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 talk radio is now searchable - Locl.co.za

    South African talk radio is now searchable

    28 August 2026
    JSE-listed ICT firm suspended for not paying its own dividend

    JSE-listed ICT firm suspended for not paying its own dividend

    28 August 2026
    The stuff that doesn't fit on the quote - Graham Millar SevenC

    The stuff that doesn’t fit on the quote

    28 August 2026
    Koeberg is completely offline

    Koeberg is completely offline

    28 August 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}