International self-provisioning

ADSL South Africa (Broadband South Africa), 19 November 2006

Cellular operators in South Africa are no more dependent on Telkom for international links. Government effectively cleared the way for Cell C, MTN and Vodacom to do international self-provisioning.
 
The good news is that the three operators “are now able to develop their own international links and effectively bypass those services offered by Telkom, Sentech and Neotel” (Vecchiatto, Telkom’s stranglehold broken). Both Cell C and MTN welcomed the government’s announcement. Vodacom still needs to comment on the latest development.
 
Nkateko Nyoka, MTN Head of Regulatory Affairs: “Telkom's monopoly over the international gateways was given under the Telecommunications Act, which has been replaced by the EC Act.”
 
Mike Falconer, Cell C’s Senior Manager of Carrier Relations: “Now we can go to the incumbent and say these are our options and what can they do for us to bring down international costs.”
 
What are the immediate benefits for the average South African?
 
Well, to be honest don’t expect fireworks at least not over night. The best news for us is that we’re one step closer to the kind of competition that’s needed to bring telecoms prices in South Africa down.
 
Should we expect a drastic cut in prices for overseas calls?
 
The answer is a definite “no” if one takes Richard Hurst’s word for it. He’s a BMI-TechKnowledge analyst. “This will only relate to their own backhaul use (ie, the network needed to connect the various calls within the operator's system) and will not necessarily mean they will be able to resell to other telecommunications operators” (Hurst). In other words, there’s no real incentive for cellular operators to cut the prices of overseas calls at this stage.
 
ADSL South Africa (Broadband South Africa) welcomes the above news.