South Africa’s largest mobile operator Vodacom is calling for a delay to implement further interconnection rate cuts after being hit by the reduction imposed by the regulator in March.
“The effect of the rate cut was that Vodacom lost R600m (E64m) on an…
South Africa’s largest mobile operator Vodacom is calling for a delay to implement further interconnection rate cuts after being hit by the reduction imposed by the regulator in March.
“The effect of the rate cut was that Vodacom lost R600m (E64m) on an annual basis,” spokesman Richard Boorman said.
“Vodacom agrees to reduce the rate to 40 cents but we need more time to restructure our business plan,” he added.
On March 1, the Independent Communications Authority of South Africa obliged Vodacom to cut its rate for peak calls by almost R1.25 to 89 cents a minute. The regulator plans to reduce the rate to 65 cents per minute on July 1, to 50 cents in 2011 and to 40 cents in 2012.
Vodacom proposes to reduce rates at peak hours to 50 cents by 2013 and is also calling for retaining a differentiation between peak and off-peak times.
