Telkom Says It Still Needs Regulatory Support

Telkom CEO Serame Taukobong said in the group’s integrated annual report for 2023, the operator believes that it should continue to qualify for asymmetric mobile termination rates (MTRs).

This will allow the telecommunication company to charge operators more and pay them less to carry calls between their networks. For instance, if a Telkom customer were to phone a Vodacom customer, Telkom would pay less to Vodacom for terminating that call than the other way around, according to a TechCentral report.

“We believe that the Independent Communications Authority of South Africa’s change of approach regarding which mobile operators qualify for asymmetric MTRs is irrational, considering the entrenched duopoly and its related market dynamics,” said Taukobong.

Icasa’s changes came in March 2022 when it said MTRs would “move to symmetry within a transitional period of 12 months” which the decision followed after a review which began in May 2021.

Removing the regulatory subsidy for Telkom and Cell C could affect the two telecoms’ revenues. According to the new rule, the ability to charge asymmetric rates is reserved for new licensees only, and they’ll only get the advantage for “three years after entry into the market”.

In September 2022 Telkom filed a court application seeking a review of Icasa’s 2022 findings. In 2023 Icasa gave notice of its intention to continue with the next phase of its review despite Telkom’s ongoing litigation.

in testimony to the Competition Commission at the time Former group CEO Sipho Maseko said, “For a solid 20 years, asymmetry was free cash that flowed from Telkom to the now-dominant mobile players.”