We'll have to depend on a regulatory process for interconnect cuts

So the interconnection saga continues. It seems that the process of deliberations between ICASA and the operators is a thing of the past. Agreement was apparently reached on an interconnect rate, but there are raging arguments around asymmetric tariffs.

So now ICASA will continue with the regulatory process under the EC Act and hopefully we will see resolution through that process.

In the meantime there is also hope that Parliament will come up with something. The only challenge here is that I don't think anything will be resolved unless it's a legal process that is followed. And we all know how long those processes can take...

Who knows - do we keep dreaming of a "lower call-cost" Christmas?

Anyway, an industry that is probably relieved to an extent that the process has not been concluded must be the LCR industry. When you think about it, these are probably the guys that are going to be hit hardest if interconnection rates are cut.

Think about it - their business focus is to help companies save on their communications by routing calls via the cheapest route. They obviously charge for this service, whilst saving their customers money, but the need for LCR could drop significantly if interconnection rates are dropped by a big enough margin. So what impact will it have on them when the interconnection rates are dropped significantly? It seems the impact of this drive to bring down costs is a lot bigger than anticipated...