Telkom to stop subsidising private operators like MTN and Vodacom blaming unfair mobile termination rates (MTRs), noted that operators pay a maximum of 40c for calls terminating on other networks, but calls terminating on Telkom’s network cost 12c. Maseko said it was unfair that companies such as Vodacom and MTN had been able to make profits and grow while Telkom Mobile was unprofitable, according to chief exective officer (CEO) Sipho Maseko.
In an interview with the Sunday Times, Maseko said Telkom had paid around ZAR60 billion (US$6 billion) over the last seven years to terminate calls, but had only received “a pittance” in return from an “unjust” relationship.
“It’s been through Telkom subsidies that companies like Vodacom and MTN have been able to grow internationally,” he said, appealing to the Independent Communications Authority of South Africa (ICASA) to allow the company to charge more.
“We are in the water with Michael Phelps and we’ve got to swim with lead irons on our legs,” Maseko said.
He said the company had plans to operate Telkom Mobile under “a different model” and made it clear it would not be shut down. A fibre optic network is central to this, making copper cabling unnecessary and saving money.
Telkom Group Ltd
Telkom Group Ltd. is a wireline and wireless telecommunications provider in South Africa, and operating in more than 38 countries throughout the African continent. Telkom is a semi-privatised, 39% state-owned company.
Telkom Mobile (8ta)
8ta is a South African mobile telecommunications company. 8ta was launched in October 2010 and is owned by Telkom. 8ta phone numbers use the 0811 to 0819 dialling prefixes. 8ta's competition in South Africa includes MTN, Vodacom, Cell C and Virgin Mobile, later re-branded as Telkom Mobile.
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