what are mobile - cell phone deals · that's a small part of the total cost of a call. vodacom...

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TERMINATION RATES, AND WHY SHOULD I CARE? When you call someone on another network, Vodacom has to pay that network for using their infastructure. That's a small part of the total cost of a call. Vodacom also has to pay for: Vodacom Vodacom pays network A to connect (terminate) a call Vodacom's infrastructure Network A Sort of. The regulator has implemented ‘asymmetry’, meaning, by 2016, Vodacom will pay four times more to connect calls to Cell C and Telkom Mobile than they pay to connect to Vodacom. Because Vodacom gives more money to the other guys than they give to Vodacom, “Sucks for Vodacom. Why should I care?’ Investment & upgrades Administration License & spectrum fees Tax BUT this means less money for Vodacom to invest in network upgrades and bringing overall call costs down. “Where to from here?” This should mean more money to invest in the network and lower communications costs. WHAT ARE MOBILE “OK, it's a small part of the cost of a call, but bringing it down is still good, right?” Vodacom is working with the authorities to try and sort things out A

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Page 1: WHAT ARE MOBILE - Cell Phone Deals · That's a small part of the total cost of a call. Vodacom also has to pay for: Vodacom Vodacom pays network A to connect (terminate) a call Vodacom's

TERMINATION RATES,AND WHY SHOULD I CARE?

When you call someone on another network, Vodacom has to pay that network for using their infastructure.

That's a small part of the total cost of a call. Vodacom also has to pay for:

Vodacom

Vodacom pays network A to connect (terminate) a call

Vodacom'sinfrastructure

Network A

Sort of. The regulator has implemented ‘asymmetry’, meaning, by 2016, Vodacom will pay four times more to connect calls to Cell C and Telkom Mobile than they pay

to connect to Vodacom.

Because Vodacom gives more money to the other guys than they give to Vodacom,

“Sucks for Vodacom. Why should I care?’

Investment & upgrades Administration License & spectrum fees

Tax

BUT

this means less money for Vodacom to invest in network upgrades and bringing overall call costs down.

“Where to from here?”

This should mean more money to invest in the network and lower communications costs.

WHAT ARE MOBILE

“OK, it's a small part of the cost of a call,but bringing it down is still good, right?”

Vodacom is working with the authorities to try and sort things out

A