News & Updates

//Interview with TechCentral: Switch Telecom slams ICASA

Interview with TechCentral: Switch Telecom slams ICASA

Communications regulator Icasa has not thought through its proposed new call termination rate regulations and, if they’re implemented without significant changes, they will harm the industry and lead to higher prices for consumers.

That’s the view of Switch Telecom CEO Greg Massel, who spoke to TechCentral in a podcast interview on Monday (listen to the discussion below).

“The single biggest issue is that, either intentionally or unintentionally, they seem to steal from the poor and give to the rich,” he said. “It really could be devastating to a lot of the newer entrants to the market.”

Massel said Icasa has proposed a “complete turnaround” in the strategy it followed between 2010 and 2016. “In 2010, there seemed to be an acknowledgement that there was some level of convergence between fixed and mobile technologies and between markets. Prior to 2010, the ratio of the mobile to the fixed termination rate was about 4.5 times. Over the space of eight years, it’s come down 1.3 times,” he said.

“What we are seeing in this draft regulation is a complete reversal of that. The proposal is to go up from current levels back to the level of fixed-mobile subsidisation that we had in March 2010. That’s really backward. There’s no reason for the fixed market to be subsidising mobile, because the market dynamics have changed…”

Massel described the draft regulations as being drawn up with “good intentions” but implemented badly.

“The idea of regulating call termination tariffs and bringing them down towards cost as a pro-competitive remedy is fundamentally a good one and is to be welcomed, but it has to be done responsibly. There’s no short-cutting it and the indication here is that Icasa has tried to cut corners — and that’s where the harm is.”

He encouraged Icasa not to implement the new regulations on 1 October as planned, but rather to delay them “by a few months”. Providing such a short period of time to implement the new regulations and consider inputs from the industry is “inexcusable”.

“The draft regulations appear rushed and poorly thought out, and when the result of a rushed decision is that you come to a conclusion in terms of which the poor subsidise the wealthy, well that’s not only inexcusable, it’s actually perverse.”

It’s a great podcast about a very important issue. Don’t miss it!

Click here to listen to the podcast.

 

August 27th, 2018|Latest News|

Share This Story, Choose Your Platform!

  • Switch Telecom Facebook
  • Switch Telecom Linkedin

News and updates

Win with Switch Telecom

Would you like to win a Cordless Handset Bundle? It's easy, simply Like and Share our page on Facebook. Access our Facebook page here: Switch Telecom Facebook Terms and Conditions apply. Competition ends on the 1st of October 2018. Competition applies to South African residents only. The winner will be announced on the 5th of October 2018 on Facebook.

September 5th, 2018|Categories: Latest News|

Telephony deployment simplified with Switch Telecom’s Auto-provisioning system

The demand for cloud telephony services is at an all-time high. VoIP services and Hosted PBX solutions are becoming increasingly popular with small and large enterprises. There is a much lower barrier to entry in comparison to traditional PABX and telephony solutions. VoIP rollouts are usually easier, with quicker turnaround times to deploy the solution, regardless of where the site is situated. Being in the cloud affords hosted PBX telephony solutions the flexibility that a physical telephony solution can't.  Adding [...]

June 6th, 2018|Categories: Latest News|

A few ways to work smarter with your Switchboard/PBX

According to Statistics SA, the South African economy grew by 1.3% in 2017. It seems businesses across various industries are struggling in the current economy. Running a business can be expensive.  We know many businesses are facing a hard time. There are many rabbit holes where money can disappear into, this is especially true when it comes to your PBX. A Switchboard or Private Branch Exchange (PBX) service should enhance your business but can easily suck up money if not [...]

March 12th, 2018|Categories: Latest News|

Will free higher education solve the telecoms skills shortage?

On 16 December 2017, President Zuma announced that the government would subsidise free higher education for poor and working-class students. President Zuma said, “Having amended the definition of poor and working-class students, government will now introduce fully subsidised free higher education and training for poor and working-class South African undergraduate students, starting in 2018 with students in their first year of study at our public universities." According to the President, poor and working-class students are “students currently enrolled at Technical [...]

January 12th, 2018|Categories: Latest News|

ICASA’s Number Portability draft regulations will force service providers to up their game

On 24 November 2017, ICASA (the Independent Communications Authority of South Africa) released new draft regulations on Number Portability. These proposed regulations aim to achieve effective and efficient functionality when porting numbers from one provider to the next; effective access and routing of communication regardless of the number being ported, and the licensees having to address cost allocation and cost recovery when porting numbers. Number Portability is the transfer of geographic numbers, non-geographic numbers (with prefixes 086, 080 and 087) [...]

December 11th, 2017|Categories: Latest News|