• Used as a weapon to cripple competition - Make no mistake, high interconnection rates are used as a weapon by some network operators in order to cripple and even destroy any competition they may face in the telecoms market.  

MTN and Vodacom are excellent examples of dominant network operators that have increased mobile interconnection rates to ridiculous high levels in order to cripple the likes of Cell C and Virgin Mobile SA. MTN and Vodacom were allowed by Government to hike interconnection rates with no less than 400% just before the launch of Cell C.

In other words, given the above, it's clear that high interconnection fees can help to a great deal to make phone calls across various telephone networks more expensive.

2011

Neotel’s Plans to Take 15% of Telkom’s Market Share

2009

Mobile interconnect rates: What’s all the noise about?