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

      MultiChoice will ride out Nigeria chaos

      13 June 2024

      Showmax reports R2.6-billion in trading losses

      13 June 2024

      Big section of 2Africa subsea cable is now live

      12 June 2024

      MultiChoice sheds 9% of its subscriber base in 12 months

      12 June 2024

      Win for MTN as Standard Bank makes MVNO shift

      12 June 2024
    • World

      SpaceX sued by engineers fired after accusing Elon Musk of sexism

      13 June 2024

      Elon Musk withdraws lawsuit against OpenAI

      12 June 2024

      Investors cheer Apple AI strategy

      12 June 2024

      High-fidelity audio is finally coming to Spotify

      11 June 2024

      Musk threatens to ban Apple devices over OpenAI integration

      11 June 2024
    • In-depth

      It’s Jensen’s world now

      6 June 2024

      From Talkomatic to WhatsApp: the incredible history of instant messaging

      28 May 2024

      The 20 most influential tech products of all time

      22 May 2024

      Early signs that AI is fuelling a productivity boom

      21 May 2024

      GPT-4o is a stunning leap forward in AI

      18 May 2024
    • TCS

      TCS+ | Telco or ISP? Tired of load shedding chaos? This is for you

      13 June 2024

      TCS+ | Check Point dissects the complexities of cloud security

      11 June 2024

      TCS | MultiChoice declares war on piracy – the man leading the fight

      10 June 2024

      TCS+ | ESET’s Adrian Stanford: how AI will transform cybersecurity

      10 June 2024

      TCS+ | Pinnacle CEO on how AI is going to transform SA business

      6 June 2024
    • Opinion

      Lessons from healthcare for navigating South Africa’s energy crisis

      12 June 2024

      How to maximise solar panel performance in winter

      11 June 2024

      Corrupt municipalities crushing affordable connectivity in South Africa

      4 June 2024

      Post Office debacle shows ANC is out of ideas

      28 May 2024

      Should the SABC have discretion to reject a political ad?

      19 May 2024
    • Company Hubs
      • 4IRI
      • Africa Data Centres
      • Altron Document Solutions
      • Altron Systems Integration
      • Arctic Wolf
      • AvertITD
      • CallMiner
      • Calybre
      • CoCre8
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • E4
      • Entelect
      • ESET
      • Euphoria Telecom
      • iKhokha
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LG Electronics
      • LSD Open
      • Maxtec
      • MiRO
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paratus
      • Ricoh
      • Skybox Security
      • SkyWire
      • Velocity Group
      • Vertiv
      • Videri Digital
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Telecoms » Icasa too aggressive in cutting fixed termination rates: Ispa

    Icasa too aggressive in cutting fixed termination rates: Ispa

    The Internet Service Providers’ Association has raised concerns about the planned cuts in fixed call termination rates.
    By Duncan McLeod16 April 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The Internet Service Providers’ Association (Ispa) has raised concerns about what it has described as the “aggressive” proposed cut in fixed-line call termination rates.

    These wholesale rates, charged by operators for calls carried between their networks, have come down sharply over the past decade as Icasa has moved to reduce the cost to communicate in South Africa.

    But Ispa has now warned that the regulator may have gone too far in proposing that fixed call termination rates be reduced to just 1c/minute by next year.

    The cost of deploying fixed lines is far higher than in Europe, where the FTR is 40% higher than Icasa is proposing

    Last month, Icasa said in a notice published in the Government Gazette that it wants mobile termination rates slashed from the current 9c/minute (13c/minute “asymmetry” for smaller operator) to 7c (9c asymmetry) by July and to 4c (4c asymmetry) by next July.

    In fixed lines, Icasa wants termination rates to decline from 6c/minute now to 4c from 1 July and to 1c by next July – a cut of 83% in just 15 months. (There is no asymmetry in fixed call termination rates.)

    Under Icasa’s plan, smaller players Telkom and Cell C will no longer enjoy asymmetry with bigger rivals Vodacom and MTN from next year, meaning that from that 1 July 2025 they won’t receive a higher rand amount for incoming wholesale calls from other networks than outgoing calls.

    Now Ispa has questioned why Icasa hasn’t moved to converge fixed and mobile call termination rates.

    ‘Unique challenges’

    “Icasa has decided not to align South Africa’s fixed termination rate with the mobile termination rate in a move that goes against its own findings that acknowledge the convergence between fixed and mobile, driven largely by the Covid-19 pandemic,” Ispa said in a statement on Tuesday.

    Ispa member Switch Telecom said the 1c/minute proposed fixed termination rate (FTR) from July 2025 is “extraordinarily low” by global standards.

    “In addition to South Africa’s FTR being just a fraction of the FTR in highly developed markets, South Africa is a geographically large country with relatively low population density. The real-world cost of deploying fixed lines is far higher than in Europe, for instance, where the FTR is 40% higher than Icasa is proposing. Furthermore, South Africa has unique challenges relating to unreliable power which adds to the cost of providing reliable services.”

    Read: Icasa moves to slash wholesale call rates – again

    According to Ispa chairman Sasha Booth-Beharilal, the argument for parity between the mobile and fixed rates has little to do with interconnection revenue, but rests on the fact that the distinction between fixed and mobile calls is blurring. “The result is that the average cost of terminating a fixed call is now the same, if not more expensive, than terminating a mobile call.”

    Ispa isn’t alone in criticising the proposed new rates. Telkom last month also expressed dismay at the “drastic” reductions in the fixed-line termination rate, and also called for parity between fixed and mobile.

    “Telkom is concerned by the authority’s decision not to align the fixed termination rate with the mobile termination rate, but rather to drastically reduce the fixed termination rate to an amount that is drastically lower than the mobile termination rate,” the company said in response to a query from TechCentral about the draft regulations.

    The argument for parity is based on the notion that the distinction between fixed and mobile calls is “blurring”, with fixed-mobile substitution in the voice market increasing. “These trends make the average cost of terminating a fixed call the same, if not more expensive, than terminating a mobile call,” Telkom said.  – © 2024 NewsCentral Media

    Get breaking news alerts from TechCentral on WhatsApp

    Cell C Icasa Ispa Sasha Booth-Beharilal Switch Telecom Telkom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAdobe explores OpenAI partnership as it adds AI video tools
    Next Article Why satellites are going mainstream in South Africa

    Related Posts

    MultiChoice will ride out Nigeria chaos

    13 June 2024

    TCS+ | Telco or ISP? Tired of load shedding chaos? This is for you

    13 June 2024

    How to harness customer insights in the age of information overload

    13 June 2024
    Company News

    How to harness customer insights in the age of information overload

    13 June 2024

    How LayUp is advancing lay-by payments in Africa

    12 June 2024

    Recapping an extraordinary month at Next DLP

    12 June 2024
    Opinion

    Lessons from healthcare for navigating South Africa’s energy crisis

    12 June 2024

    How to maximise solar panel performance in winter

    11 June 2024

    Corrupt municipalities crushing affordable connectivity in South Africa

    4 June 2024

    Subscribe to Updates

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

    © 2009 - 2024 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.