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
      China is closing in on US tech lead despite constraints

      China is closing in on US tech lead despite constraints

      11 January 2026
      Silicon batteries are about to upend smartphone battery life

      Silicon batteries are about to upend smartphone battery life

      9 January 2026
      AI hardware booms at CES, but consumer adoption is uncertain

      AI hardware booms at CES, but consumer adoption is uncertain

      9 January 2026
      Major overhaul coming to Gmail

      Major overhaul coming to Gmail

      9 January 2026
      Telecoms firms lose bid to rein in US tech giants

      Telecoms firms lose bid to rein in US tech giants

      9 January 2026
    • World
      Samsung forecasts record operating profit as AI demand sends memory chip prices sharply higher worldwide - TM Roh

      Samsung cashes in on AI data centre boom as memory prices soar

      8 January 2026
      EU pressure mounts on Musk's X over AI 'undressing' images - Wolfram Weimer

      EU pressure mounts on Musk’s X over AI ‘undressing’ images

      7 January 2026
      Intel launches Panther Lake, its next-gen PC chip

      Intel launches Panther Lake, its next-gen PC chip

      6 January 2026
      Starlink plans to lower satellite orbit to enhance safety

      Starlink plans to lower satellite orbit to enhance safety

      4 January 2026
      Lou Gerstner, the man who saved IBM, dies at 83

      Lou Gerstner, the man who saved IBM, dies at 83

      29 December 2025
    • In-depth
      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
      DStv dodges channel blackout in last-minute deal with Warner Bros

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
    • TCS
      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
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 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 » In-depth » Rate cuts delayed as Telkom voices concern

    Rate cuts delayed as Telkom voices concern

    By Editor18 August 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Telkom's Andrew Barendse

    A plan by the Independent Communications Authority of SA (Icasa) to cut wholesale call termination rates may be delayed until next year, parties close to the process say.

    The rates, which were supposed to be cut last month as a first step on a two-year “glide path” of reductions, are the fees the operators charge each other to carry calls onto their networks.

    High termination rates, especially those charged by mobile operators, have been blamed for keeping retail tariffs higher than they might otherwise be and for acting as a barrier keeping new rivals from emerging.

    Former Icasa chairman Paris Mashile had set July 2010 as the deadline by which the first cuts would happen, followed by further cuts in 2011 and 2012. Both mobile and fixed-line termination rates were meant to come down over this period.

    But industry insiders now say the legal, regulatory and economic complexities of regulating the rates mean they will not come down as soon as many consumers and politicians had initially hoped.

    And the cellular network operators, which have lobbied hard for the first involuntary cut in mobile termination rates to be held off until March 2011, are now likely to get their way. The operators first cut their rates voluntarily on 1 March 2010 and they have since argued that two cuts in one financial year would be too much for them to bear. They warn another cut before March would lead to widespread job losses.

    Despite their objections, regulatory experts polled by TechCentral suggest delays in reducing the rates are not related to objections from the mobile operators but rather because of complaints from Telkom over the proposed reduction in fixed-line termination rates.

    Telkom has objected strongly to the proposed glide path for fixed-line calls and, in fact, has argued the rates should go up, not down. The operator met with Icasa officials on 28 July to lobby its case, following public hearings held in Midrand at the end of June. (The other big operators have had similar follow-up meetings with the authority.)

    Telkom regulatory executive Izaak Coetzee argued at the June hearings that the operator supported a glide path but insisted the rates should be adjusted up, not down, because of the so-called “access deficit”.

    The access deficit refers to the fact that Telkom is not able to recover the average cost of servicing a line through its base subscription charges.

    Coetzee argued that Telkom’s call termination rates — set at 23c in peak times and 12c in off-peak times for local calls and 33c and 19c for peak and off-peak national calls — did not allow the company fully to recover its costs.

    Icasa has proposed reducing fixed-line termination rates to 15c/minute in July 2010, and to 12c in July 2011 and 10c in July 2012, rates which Andrew Barendse, Telkom’s group executive for regulatory affairs, says are unsustainable. The authority also wants to do away with separate peak and off-peak rates.

    Barendse told TechCentral this week that it’s not clear if Icasa is taking Telkom’s arguments on board. But he says it’s important that whatever Icasa decides to do about fixed-line termination rates, the decision must be “based on evidence”, namely a careful interrogation Telkom’s actual costs.

    It now appears Icasa is coming round to Telkom’s point of view, and that the proposed adjustments will be reviewed. “A lot of what’s happening now is around trying to resolve this issue with Telkom,” says Dominic Cull, MD of Ellipsis Regulatory Solutions, which advises many of the smaller players in the market.

    Cull says it’s important the uncertainty is resolved as soon as possible to avoid a situation where companies can “game the system”.

    “It would be lovely if [Icasa] could finalise this as it would clear up massive arbitrage and fraud opportunities that exist in the market.”  — Duncan McLeod, TechCentral

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


    Andrew Barendse Cell C Dominic Cull Ellipsis Regulatory Solutions Icasa MTN Telkom Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAcsa pumps millions into IT
    Next Article SA cities in big fibre roll-out push

    Related Posts

    Why Solly Malatsi was right to bury the Post Office monopoly

    Why Solly Malatsi was right to bury the Post Office monopoly

    4 January 2026
    TechCentral's South African Newsmakers of 2025

    TechCentral’s South African Newsmakers of 2025

    18 December 2025
    Telecoms industry backs Malatsi policy directive, warns on execution - ACT CEO Nomvuyiso Batyi

    Telecoms industry backs Malatsi policy directive, warns on execution

    17 December 2025
    Company News
    Owning the right data is the new competitive moat in AI - CallMiner

    Owning the right data is the new competitive moat in AI

    9 January 2026
    Why trust is the real currency in modern media

    Why trust is the real currency in modern media

    6 January 2026
    Why banks and insurers need a single decisioning brain as pressures collide - SAS

    Why banks and insurers need a single decisioning brain as pressures collide

    29 December 2025
    Opinion
    ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

    ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

    14 December 2025
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025

    Subscribe to Updates

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

    Latest Posts
    China is closing in on US tech lead despite constraints

    China is closing in on US tech lead despite constraints

    11 January 2026
    Silicon batteries are about to upend smartphone battery life

    Silicon batteries are about to upend smartphone battery life

    9 January 2026
    AI hardware booms at CES, but consumer adoption is uncertain

    AI hardware booms at CES, but consumer adoption is uncertain

    9 January 2026
    Major overhaul coming to Gmail

    Major overhaul coming to Gmail

    9 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}