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    Regulatory Captive: Cell C’s Desperate Bid to Delay the Inevitable

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    Here’s a provocative version of the content:

    “Cell C is pulling out all the stops to derail the planned call termination rate changes, which would see the industry’s smaller players crushed. The company’s CEO, Jorge Mendes, is crying foul, saying the new rates would be a death sentence for smaller operators like Cell C.

    Mendes argues that the changes would wipe out R300 million in revenue for smaller players, and that the two big boys, Vodacom and MTN, would just laugh all the way to the bank as they continue to milk their customers. “This will take out the smallest operators from the market,” Mendes warned. “It’s a disaster waiting to happen.”

    But the Independent Communications Authority of South Africa (ICASA) is adamant that the changes are necessary to reduce costs and increase competition. “Phasing out asymmetry will empower operators to adapt gradually, while maximising benefits for consumers,” said an ICASA spokesperson.

    But Mendes isn’t having it. He’s accusing ICASA of having a sweetheart deal with Vodacom and MTN, allowing them to rake in the profits while smaller operators like Cell C struggle to stay afloat. “What they forget is that they intentionally put the call termination rates up when Cell C launched, and they put them up to R1.40,” Mendes snarled. “So, Cell C had a false start right from the beginning.”

    Mendes is calling on ICASA to leave the current asymmetry structure in place for at least three years, allowing smaller players to get a foothold in the market. But ICASA seems determined to push ahead with its plans, despite the backlash from smaller operators.

    It’s a high-stakes game of chicken, with Cell C and ICASA on opposite sides. Will Cell C’s gambit pay off, or will ICASA steamroll ahead with its plans? Only time will tell.”

    aqiay
    Author: aqiay

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