Thursday, October 29, 2009

Do we send revenues overseas or do what is right?

Been bad... been quiet...

So, the latest developments in the whole interconnection rate saga is really that ICASA is being painted as the bad guy. Well there are a number of dimensions to this.

Let's think about this carefully. Before Cell C came into the market, our mobile interconnection rates were pityful - if I recall correctly they were sitting at around 20 cents. Introduce competition and what do the two big players do? Move it up to R1.25 - with ICASA's approval.

Secondly - the industry has been calling for competition - in fact all the industry has been asking for is someone with a backbone to stand up and give some direction. Now the DoC has done that, but now we have to play regulatory catch-up.

Okay, before I start rambling, let's take a step back. ICASA tried to play the whole "you know you have to do it because this is what the public wants" game with the mobile operators. The outcome? ICASA eventually had to walk away. The two dominant players agreed to a new interconnect tariff, the smaller one walked away, stating that it was not the best that could be given (talk about positioning). Just a little inside info - nothing has been submitted to ICASA for approval on the lower interconnect rate, which means the two operators save face with consumers in the short term, but unless it's approved by ICASA it won't happen. And that also doesn't mean you and I will see a saving.

Now ICASA is going the legal route using Section 10 of the EC Act to find a solution. I think that's awesome - if it's a legal process, it means it will have to be enforced. But it's going to take till June 2010?????? You started this process months ago....

Someone, somewhere needs to take a stand for the consumer - that's the BOTTOM LINE.

You can delay this process indefinitely because there is really nothing the consumer can do - but wait till there are international alternatives.... Yes, the talk on the street is that our market liberalisation (as limited as it was) is far from over....

Do we wait to send precious SA Rands into other countries, or do local telecoms operators preserve our local economy and actually make a change?

BIG question...

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