Cell C takes YouTube shot over MTN 'greed'

2014-02-20 10:31
Cell C acting CEO Jose Dos Santos says that mobile operators should welcome MTR reductions. (Duncan Alfreds, News24)

Cell C acting CEO Jose Dos Santos says that mobile operators should welcome MTR reductions. (Duncan Alfreds, News24)

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MTN is greedy, says Cell C

2014-02-17 10:44

The decision by mobile operator MTN to take legal action on the regulator's announcement of Mobile Termination Rates (MTRs) is a poor reflection on the industry. Watch. WATCH

Cape Town - Mobile operator Cell C has launched a guerrilla marketing campaign aimed at MTN.

In a video posted on YouTube, Cell C asks: "Is your network treating you fairly?"

Though the advert never names MTN specifically, Cell C is on record as expressing its disappointment and frustration with the former's court challenge to the recently announced Mobile Termination Rates (MTRs).

Icasa, or the Independent Communications Authority of South Africa announced recently that MTRs in SA would be reduced to allow for more competition in the country.

But the reductions are asymmetrical: Vodacom and MTN would effectively have to pay Cell C and Telkom Mobile more for calls that terminate on their networks, meaning that the smaller operators can be more aggressive on pricing.

Unhappiness

MTN expressed its unhappiness with the new regulations

"Suffice to say that the Call Termination rates announced by Icasa represents a substantial departure from the 2010 Call Termination Regulations which set an important regulatory precedent in relation to matters such as cost-orientation of the rate-setting, a managed glide path, and declining asymmetries," the operator said.

In its ad, Cell C makes a thinly veiled attack on MTN: "In fact, one of South Africa's biggest and most profitable cellular companies is taking the regulator to court to fight this."

The operator indicated that it will oppose the court case on MTRs.

"I'm disappointed - what I can say is that we're respondents to their initial affidavit and we will do what it takes and we will respond," Cell C acting CEO CEO Jose Dos Santos told News24 about the impending lawsuit.

Here's the Cell C video on YouTube:



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