MTR delay not in public interest says Telkom SA

February 21, 2014 • Mobile and Telecoms, Southern Africa, Top Stories

Telkom Group CEO, Mr Sipho Maseko. (Image source: File)

Telkom Group CEO, Mr Sipho Maseko. (Image source: File)

Recent moves to oppose new Mobile Termination Rates (MTRs) will delay reducing the cost of calls to the consumer, and are not in the public interest according to Telkom SA.

The telecommunications services provider issued a press release stating its reliefe that the initial delay to the implementation of Mobile Termination Rates will not be as long as originally anticipated and will be implemented on 1 April 2014.

According to Telkom any delay in this implementation is to the detriment of consumers, who have in the past benefited from Telkom’s commitment to pass through savings derived from previous regulatory interventions. Previous interventions have stimulated the industry to become more competitive as all players have moved to offer lower retail prices following these interventions.

Telkom Group CEO, Mr Sipho Maseko says, “Telkom always strives to carry through these savings to our customers. In the past four years Telkom has passed on significant savings to customers as a direct result of the lowering of MTRs.

“As it stands Telkom Mobile still offers the lowest call rate of 29 cents on our Sim-Sonke offer.

“This delay means that larger mobile operates will continue to enjoy favourable termination rates at Telkom’s expense especially if we consider that from 2001 to 2012 Telkom has subsidised these operators.

“This has ultimately constrained our ability to offer even better retail prices to our consumers,” concluded Mr Maseko.

Staff Writer

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