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 down, are the fees the operators charge each other to carry calls onto their networks.
The apparent collapse of pay-TV operator Super 5 Media is unfortunate. It means less chance of the kind of rivalry that fosters innovation and drives down prices. At the top end of the market, however, competition to DStv may come from a less obvious source. Super 5 Media, formerly known as Telkom Media, was cursed almost from the start. When Telkom, under former CEO Reuben September, decided to end its investment, the writing was already on the wall.
The Independent Communications Authority of SA (Icasa) has received a written assurance from pay-TV licensee Super 5 Media that it is still in operation. “We received a communiqué from Super 5 Media a week before last clarifying its position in relation to recent press reports,” says Icasa spokesman, Paseka Maleka.
South Africans once regarded Neotel as having the real potential to offer a competitive alternative to Telkom in residential services. But as the company releases an uninspired prepaid retail offering this month, that dream already appears to have faded.
Outgoing Telkom chief financial officer Peter Nelson has offloaded more of the shares he holds in the JSE-listed telecommunications group. Telkom announced late on Friday that Nelson had sold nearly 40 000 shares worth more than R1,3m. He sold the shares last Thursday.
Telecommunications company Neotel has unveiled its first prepaid offering, announcing on Wednesday that it would charge 20c/minute for ad-hoc prepaid data and 50c/minute for calls to Telkom and other Neotel numbers. Neotel is “soft launching” its first prepaid product this month in the hope of improving its poor performance in the retail consumer market, where it has signed up fewer than 50 000 paying customers.
SA’s cellular communications market is about to get a big shake-up as two players, one new, Telkom Mobile, and one reinvigorated, Cell C, get ready to go toe to toe with each other and incumbents MTN and Vodacom. SA’s smallest mobile operator, Cell C, has never had an easy time of it. Launched a decade ago after a particularly troubled birth, the operator has faced an uphill battle against dominant incumbents MTN and Vodacom.
SA’s mobile operators are upset at the growing delays they face in having environmental impact assessments concluded for the construction of new base stations. They say it’s holding back the sector. Cell C CEO Lars Reichelt used a media briefing earlier this week to criticise municipal bureaucrats for the lengthy delays.
Bandwidth on the East Africa Submarine System (Eassy), a new, 10 000km-long submarine fibre-optic cable on Africa’s east coast, is now available from Neotel and MTN, the two telecommunications operators announced at a press conference on Thursday. At the same time, the design capacity of the system has almost been trebled, going from 1,4Tbit/s to 3,8Tbit/s, making it the fastest cable system serving the African continent. However, only 60Gbit/s on that capacity has been “lit up” so far.
Cell C is like a new company. In a presentation to media on Wednesday morning, CEO Lars Reichelt set out a radical new strategy and unveiled a revitalised brand image for the mobile operator. It may still be SA’s smallest cellular network by market share — Telkom hasn’t launched its mobile business yet — but under Reichelt, who was appointed to the job last year, Cell C is fast becoming the market’s feistiest player.
