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
      Saps bodycam tender collides with Popia's biometrics rules

      Saps bodycam tender collides with Popia’s biometrics rules

      15 September 2026
      Profit expected to climb at iOCO even as share price lags - Rhys Summerton

      Profit expected to climb at iOCO even as share price lags

      15 September 2026
      Calls to slow AI put the US stock market boom in doubt

      Calls to slow AI put the US stock market boom in doubt

      15 September 2026
      Godongwana tears into his own government's ICT policy drift - Enoch Godongwana

      Godongwana tears into his own government’s ICT policy drift

      14 September 2026
      Optasia's own targets point to a much slower second half - Salvador Anglada

      Optasia’s own targets point to a much slower second half

      14 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      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
    • 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
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

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

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
    • Opinion
      The end is nigh, and the shares go on sale in October - Duncan McLeod

      The end is nigh, and the shares go on sale in October

      14 September 2026
      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
    • 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 » 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
    Get breaking news on 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
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Andrew Barendse Cell C Dominic Cull Ellipsis Regulatory Solutions Icasa MTN Telkom Vodacom
    WhatsApp YouTube
    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

    MTN opens fifth Women in Digital Business Challenge - Arthur Mukhuvha

    MTN opens fifth Women in Digital Business Challenge

    14 September 2026
    Lesaka's first profit comes as its merchant business goes backwards - Lincoln Mali

    Lesaka’s first profit comes as its merchant business goes backwards

    10 September 2026
    MTN puts a price on network quality - Ferdi Moolman

    MTN puts a price on network quality

    10 September 2026
    Company News
    Asus ExpertBook P5 G2 packs AI performance into a 1.27kg laptop

    ASUS ExpertBook P5 G2 packs AI performance into a 1.27kg laptop

    15 September 2026
    Inside the 2026 Rising Star judging week

    Inside the 2026 Rising Star judging week

    15 September 2026
    SA20 launches schools derby series with rain as title sponsor

    SA20 launches schools derby series with rain as title sponsor

    14 September 2026
    Opinion
    The end is nigh, and the shares go on sale in October - Duncan McLeod

    The end is nigh, and the shares go on sale in October

    14 September 2026
    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

    Subscribe to Updates

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

    Latest Posts
    Asus ExpertBook P5 G2 packs AI performance into a 1.27kg laptop

    ASUS ExpertBook P5 G2 packs AI performance into a 1.27kg laptop

    15 September 2026
    Inside the 2026 Rising Star judging week

    Inside the 2026 Rising Star judging week

    15 September 2026
    Saps bodycam tender collides with Popia's biometrics rules

    Saps bodycam tender collides with Popia’s biometrics rules

    15 September 2026
    Profit expected to climb at iOCO even as share price lags - Rhys Summerton

    Profit expected to climb at iOCO even as share price lags

    15 September 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}