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Cell C wants MTN to pay up
ADSL South Africa (Broadband South Africa), 4 July
2007
Cell C recently claimed that MTN owes them R200 million in
interconnect fees. MTN disagrees.
Cell C wants MTN to pay up
‘MTN and Cell C have locked horns on the Community Service Telephone interconnect
rates which has resulted in a refusal from MTN to pay any interconnect fees to the smaller operator’ (MTN owes Cell
C R 200-million, MyBroadband, 29 June 2007).
In other words, things are not well between Cell C and MTN because of interconnect
fees.
Why is MTN not paying up?
Community Service Telephone (CST).
‘MTN claims that Cell C has not restricted the roll out of CSTs to poor and rural
areas but Cell C maintain that ICASA approved of their
plans’ (MTN owes Cell C R 200-million, MyBroadband, 29 June 2007).
In other words, MTN is not willing to pay interconnect fees of CSTs in disputed
areas.
Jeffrey Hedberg, CEO of Cell C, ‘…said that he suspects that MTN’s unhappiness with
the current arrangement stems from the fact that they did not fully capitalize on the opportunities which the CSTs
brought. Both Cell C and Vodacom aggressively rolled
out CSTs and it has proven to be a profitable investment’ (MTN owes Cell C R 200-million, MyBroadband, 29 June
2007).
In other words, Hedberg thinks it’s a case of MTN being jealous of Cell C’s
successes.
Has ICASA approved Cell C’s rollout plans?
Yes.
‘…ICASA has approved Cell C’s rollout plans…’ (MTN owes Cell C R 200-million,
MyBroadband, 29 June 2007).
In other words, ICASA gave Cell C the go
ahead.
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