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Telkom reacts to Minister’s interconnect fee announcement

November 13, 2009 • Mobile and Telecoms

Telkom has released a statement welcoming yesterday’s announcement by Communications Minister, General (RET) Siphiwe Nyanda, that mobile cellular operators (MCOs) have agreed to cut peak interconnection rates from R1,25 to 89 cents a minute from February/March 2010 as being a step in the right direction.

“Telkom has consistently stated that the Company is committed to the process of affordable access to telephony for all South Africans. We believe that the reduction in mobile termination rates announced yesterday by the minister is a positive step forward towards the attainment of this goal,” said Nombulelo Moholi, MD for Telkom SA.

She added that the minister had demonstrated “commendable leadership and resolve in his handling of the matter of interconnect rates”.

“The reduction in mobile termination rates will enable Telkom to pass on substantial savings to Telkom customers. We are currently assessing the full impact of this,” stated Moholi, adding that she expected customers to benefit from price reductions after March next year.

In terms of the minister’s pronouncement, off-peak mobile termination rates will remain at 77 cents a minute.

Currently, Telkom is paid an interconnect rate of 29 cents (peak) and 16 cents (off-peak) by MCOs.

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