Vodacom, MTN slide on South African call rate cuts | Reuters

JOHANNESBURG (Reuters) – Shares of South African mobile operators Vodacom Group and MTN Group fell sharply on Monday after the telecoms regulator said it planned to cut by 75 percent the fees they can…

GIBS Information Centre / GIBSIC‘s insight:

ICT  – “South Africa still ranks 30th among 46 African countries in terms of pre-paid telephony affordability, according to a 2012 study by Research ICT Africa.  –  The report cited neighbouring Namibia as having some of the cheapest call rates despite having had similar call termination rates as South Africa only a few years ago.

ICASA’s draft regulations are due to be published this week and companies will have 14 days to comment.  –  If past experience is anything to go by, the companies are likely to drag their feet in passing on the cuts in the form of lower tariffs, according to Spiwe Chireka, a telecoms analyst at advisory firm IDC.  –  “Service providers are not quick to cut rates when termination rates go down. It would be interesting to see how ICASA or the Department of Communication would ensure that those mobile termination cuts are transferred into consumer tariffs,” she said.

Shares of Vodacom, which has the largest number of South African subscribers and a market value of $18.4 billion, ended down 4.2 percent at 116 rand.  –  MTN, which with a market value of $37.5 billion is Africa’s largest mobile operator but has a smaller portion of the domestic market, dropped 3.1 percent to 193 rand”

See on uk.reuters.com

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