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
      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      30 January 2026
      SABC Plus to flight Microsoft AI training videos

      SABC Plus to flight Microsoft AI training videos

      30 January 2026
      Fibre ducts

      Fibre industry consolidation in KZN

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

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

      30 January 2026
      What ordinary South Africans really think of AI

      What ordinary South Africans really think of AI

      30 January 2026
    • World
      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
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 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 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
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
    • 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 » MTN letter raises more questions than answers

    MTN letter raises more questions than answers

    By Editor8 December 2009
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Secret deal between mobile operators?

    Has a secret, back-room deal been reached between mobile operators and government over interconnection fees?

    All signs are pointing to a deal that stonewalls the Independent Communications Authority of SA (Icasa) and allows Vodacom, MTN and Cell C to maintain interconnection rates — the fees the mobile operators charge each other and other network providers to carry calls on their networks — at relatively high levels.

    TechCentral has had sight of an MTN letter that suggests the mobile operators have agreed to a glide path that will result in peak-time interconnection rates being reduced from 89c/minute in March 2010 to 85c/minute in October 2011 and, finally, to 80c/minute in October 2012.

    These rates are well above levels demanded by parliamentarians during recent hearings and are also far above the approximately 40c/minute Icasa has said it costs the mobile operators to carry calls over their networks.

    The MTN letter appears to suggest that there has been an agreement reached that will result in off-peak interconnection rates remaining unchanged at 77c/minute until at least 2012.

    Interconnection fees have been set at a relatively high R1,25/minute for most of the decade. Critics say they have served to discourage new competitors from emerging. All three mobile operators are net beneficiaries of the current interconnection regime.

    In the MTN letter, sent to ECN Telecommunications CEO John Holdsworth, the mobile operator has outlined a proposed reduction in peak-time interconnection rates on a “glide path” to 80c/minute in October 2012.

    This is well above the level of less than 40c/minute that Holdsworth, who has led the fight to bring down the fees, wants the rates reduced to.

    The MTN SA letter raises a number of troubling questions, not least of which is why the operator is publishing rates for 2011 and 2012 when communications minister Siphiwe Nyanda’s recent statement on interconnection rate reductions, which he read in parliament, only dealt with a reduction in March 2010 — from R1,25/minute to 89c/minute.

    Even more troubling is what this means for Icasa, which is in the process of preparing to regulate interconnection rates in terms of chapter 10 of the Electronic Communications Act. Icasa’s independence is enshrined in the constitution and as such it is meant to be free of interference by the executive arm of government.

    An industry source, who heads up an independent telecoms company but who asks not to be named, says the mobile operators have been keen to exclude Icasa from the process — and may, in fact, have succeeded in doing so.

    The source says there has been extensive “horse-trading” behind the scenes. Government has been keen for the rates to come down more quickly than Icasa can deliver.

    The worry is that the mobile operators agreed to drop the peak-time rates to 89c/minute in March on condition that Icasa does not then subject them to cost-based regulations, the source says.

    Communications ministry spokesman Tiyani Rikhotso says he is unaware of any agreement beyond the one reached with operators that will see interconnection rates reduced in March 2010.

    Cell C CEO Lars Reichelt says he is not aware of any agreement related to interconnection rate reductions in 2011 and 2012.

    MTN SA executives could not be reached for comment. — Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter


    Cell C ECN Telecommunications MTN Siphiwe Nyanda Vodacom
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleGoogle adds live updates to search results
    Next Article Datatec in $20m Asia-Pac networks acquisition

    Related Posts

    Mobile operators face tougher rules on data and billing

    Mobile operators face tougher rules on data and billing

    26 January 2026

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

    20 January 2026
    South Africa's telecoms sector enters a new growth phase

    South Africa’s telecoms sector enters a new growth phase

    19 January 2026
    Company News
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    Phishing has not disappeared, but it has grown up - KnowBe4

    Phishing has not disappeared, but it has grown up

    30 January 2026
    Smartphone affordability: South Africa's new economic divide - PayJoy

    Smartphone affordability: South Africa’s new economic divide

    29 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

    Subscribe to Updates

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

    Latest Posts
    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    30 January 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
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    SABC Plus to flight Microsoft AI training videos

    SABC Plus to flight Microsoft AI training videos

    30 January 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}