Telkom CEO Sipho Maseko says Vodacom and MTN have “unfairly benefited” from Telkom-subsidised termination rates, and the time has come to end it, reports the Sunday Times.<\/p>\n
For calls to terminate on another network, it costs operators a maximum of 40c. However, for calls to terminate on Telkom’s network, operators need only pay 12c.<\/p>\n
According to Maseko, this means Telkom has piad around R60 billion over seven years to terminate calls on cellular networks – while receiving “a pittance” in return, the Sunday Times said.<\/p>\n
\u201cIt\u2019s been through Telkom subsidies that companies like Vodacom and MTN have been able to grow internationally,\u201d Maseko said.<\/p>\n
According to the report, Maseko said the mobile operators had unfairly benefited – and the \u201cunjust\u201d relationship needed to change.<\/p>\n
Maseko appealed to Icasa to enable Telkom to charge more and compel cellular companies to charge less.<\/p>\n
Telkom’s mobile arm, Telkom Mobile is the only unprofitable division of the company, according to Maseko, and squandering the company’s capital.<\/p>\n
However, according to the report, Maseko said there were plans afoot to \u201cde-risk\u201d it and make it less capital intensive – plans which would be unveiled at Telkom\u2019s results in November.<\/p>\n
He was adamant it wouldn\u2019t be sold or shut down, the Sunday Times reported, but it was going to have \u201ca different model\u201d.<\/p>\n
No space for 4 mobile players in SA: Knott-Craig<\/strong><\/a><\/p>\n MTN CEO warns \u201cdestructive\u201d rivals<\/strong><\/a><\/p>\n Cell C\u2019s Knott-Craig warns backers may stop investing<\/strong><\/a><\/p>\n \u00a0Half of SA mobile users would change their operator<\/strong><\/a><\/p>\n Mobile subscribers in SA: who\u2019s eating whose lunch?<\/strong><\/a><\/p>\n