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
      How to tell telemarketers to get lost - officially

      How to tell telemarketers to get lost – officially

      9 October 2026
      Data centres are the new front line in the Russia-Ukraine war

      Data centres are the new front line in the Russia-Ukraine war

      9 October 2026
      When a machine can choose, who does it become?

      When a machine can choose, who does it become?

      9 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
      Claude is turning into an office suite

      Claude is turning into an office suite

      9 October 2026
    • World
      The memory crunch is making Samsung fabulously rich

      The memory crunch is making Samsung fabulously rich

      8 October 2026
      SpaceX to borrow $40-billion to buy Nvidia chips

      SpaceX to borrow $40-billion to buy Nvidia chips

      7 October 2026
      BMW restructuring plan bets on AI and new models

      BMW restructuring plan bets on AI and new models

      1 October 2026
      OpenAI's rogue agent problem keeps getting bigger - Sam Altman

      OpenAI’s rogue agent problem keeps getting bigger

      28 September 2026
      The new battle over the desktop

      The new battle over the desktop

      23 September 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      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
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      What Revolut can and cannot take from South Africa's banks - Pambos Soteriades

      What Revolut can and cannot take from South Africa’s banks

      15 September 2026
    • Company News
      • 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
      • Publishared
      • 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 » You too, Telkom

    You too, Telkom

    By Editor21 April 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    [By Duncan McLeod]

    The decision last week by the Independent Communications Authority of SA (Icasa) to reduce mobile termination rates was not unexpected. What the industry didn’t expect was for the regulator to move as quickly as it has to reduce fixed-line rates.

    It’s been a long time coming, but Icasa has finally revealed how it would like to see mobile termination rates — the interconnection fees the mobile operators charge one another to carry calls onto their networks — reduced over the next three years.

    Icasa, which is empowered to regulate termination rates under the Electronic Communications Act, wants the rates reduced from 89c/minute during peak calling time now to 40c/minute by July 2012. It wants do this on a “glide path”, reducing the rate to 65c in July 2010 and to 50c in July 2011, and doing away with a distinction between peak and off-peak calls.

    MTN, Vodacom and Cell C — all net beneficiaries of the interconnection regime — haven’t yet responded in detail to Icasa’s proposal. But you can be sure that they’re considering all their legal options, given that the proposed rates regime will cost them hundreds of millions of rand in profit.

    It seems unlikely that they’ll take Icasa to court, though — they’d be inviting a PR disaster on themselves. Communications minister Siphiwe Nyanda and his feisty director-general, Mamodupi Mohlala, both of whom have pushed hard for the rates to come down, won’t take kindly to the operators delaying the process by challenging the issue legally.

    Political parties, including the ANC, the DA and the Independent Democrats, are also broadly united on the need for mobile interconnection rates to fall. Parliament’s portfolio committee on communications, led by ANC MP Ismail Vadi, has played a leading role in ensuring Icasa moves swiftly on this.

    What no-one was expecting, though, was for the authority to tackle fixed-line termination rates at the same time as taking on the mobile telecoms providers.

    Icasa wants fixed-line termination rates to fall sharply between now and 2012 and, as in mobile, to do away with the distinction between peak and off-peak calling times and even scrap different rates for regional and national calls.

    Telkom charges an interconnection fee of 23c/minute for peak local calls and 33c for peak national calls; off-peak local calls are 12c and off-peak national calls are 19c. Icasa wants these rates reduced to a uniform 15c in July 2010, with further reductions to 12c and 10c in 2011 and 2012.

    It’s a move that should benefit Telkom’s rivals, including Neotel and Internet service providers that provide voice over Internet Protocol (VoIP) communication. VoIP providers are over the moon at Icasa’s decision. Justin Spratt, GM for Wi-Fi and mobile VoIP at Dimension Data division Internet Solutions, says he is “surprised” but “delighted” at Icasa’s decision. “There is no better news for VoIP providers,” he says. “This is a massive boon for us.”

    Icasa’s move is likely to put downward pressure on fixed-line call tariffs as competition begins to bite. The reduction in fixed termination means companies like Neotel will be able to undercut Telkom’s retail tariffs further, which should force the incumbent operator to respond with lower rates of its own.

    Already, Icasa has warned Telkom that it expects the company to pass on all the benefits of a reduction in mobile termination rates to consumers. The company has already passed on the mobile operators’ voluntary cut in rates on 1 March.

    Consumers, already enjoying tumbling prices for fixed-line broadband, can soon expect call rates to start falling, too.

    • Duncan McLeod is editor of 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


    Cell C Duncan McLeod Icasa Ismail Vadi Mamodupi Mohlala MTN Siphiwe Nyanda Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAltech downplays interconnect impact
    Next Article Vodacom faces competition complaint

    Related Posts

    SpaceX takes aim at US wireless carriers with spectrum acquisition

    Starlink is coming for your mobile operator

    9 October 2026
    South African boardrooms are about to get a lot less private

    South African boardrooms are about to get a lot less private

    6 October 2026
    DNI's R500-million bet on Mission Mobile is mostly debt - Timothy Strike

    Behind DNI’s R500-million bet on Mission Mobile

    5 October 2026
    Company News
    Why fintechs need an insurance partner they can trust - Hollard Insurance

    Why fintechs need an insurance partner they can trust

    8 October 2026
    Reusable KYC means the end of 'please upload your ID' - Contactable

    Reusable KYC means the end of ‘please upload your ID’

    8 October 2026
    Eliminating the 'toggle tax': how CRM integration changes customer experience - Martie de Beer

    Eliminating the ‘toggle tax’: how CRM integration changes customer experience

    8 October 2026
    Opinion
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026
    The steam engine lesson AI doomsayers keep missing - Sam Clarke

    The steam engine lesson AI doomsayers keep missing

    28 September 2026

    Subscribe to Updates

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

    Latest Posts
    How to tell telemarketers to get lost - officially

    How to tell telemarketers to get lost – officially

    9 October 2026
    Data centres are the new front line in the Russia-Ukraine war

    Data centres are the new front line in the Russia-Ukraine war

    9 October 2026
    When a machine can choose, who does it become?

    When a machine can choose, who does it become?

    9 October 2026
    W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

    W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

    9 October 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}
    🇿🇦 Sign up to the TechCentral newsletter