Vox warns against Telkom
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15 October 2009
And the catch all along is that Gov makes more money if interconnect is cut. Tut tut. |
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A sudden drop in interconnect rates would benefit Telkom, says Vox Telecom CEO Tony van Marken.
Telkom is the only operator that will get a Christmas present if interconnection rates are cut immediately, and it will use it to cross-subsidise and frustrate competitors, said Vox Telecom CEO Tony van Marken.
JSE-listed Vox Telecom, which has made a name for itself in the least-cost routing (LCR) market, was the last to present before Parliament during the marathon two-day public hearings into the interconnection rate and proposals to reduce it.
In its presentation, Vox said it did not mind a smaller immediate cut in the interconnection rate. However, it strongly recommended that a lower rate, such as Parliament's suggested 60c per minute, should be done incrementally over a longer period.
Van Marken made no bones about his company's standpoint. He emphasised that while its LCR business did stand to lose, the point was that it needed time to convert custom...
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