“I believe that the industry is experiencing instability due to uncertainties around interconnection rates and the public hearing on ICASA's interconnect glide path agreements have not been concluded as yet,” says Mario Pretorius, TeleMasters CEO.
TeleMasters responded to changes within the industry by starting the process of becoming a full-fledged telecommunication network, and are keeping cash back to accommodate the expansion. “We have acquired a licence, but not all agreements have been signed off for the transition from LCR to offering fully interconnect services so we are cautious on its timing,” says Pretorius.
Other companies such as MTN are planning to stop all their Connection Incentive Bonus payments for the funding of LCR equipment, while TeleMasters is planning on funding these internally.
Vodacom and Cell C are expected to follow shortly. “Currently there is no sign of when final retail tariff pricing for the LCR industry will be confirmed, and the reduction of Telkom's rates are impacting on us and we have seen a jump in businesses closing down. The number of lines installed is growing, but there is a definite drop in call volumes, perhaps caused by a slowdown in business for the Soccer World Cup celebrations,” adds Pretorius.
Looking forward, TeleMasters will review the business in the fourth quarter for a final dividend.
“Given the impact of these factors we continue to deliver excellent sales and we remain well positioned to capitalise changes within our company,” concludes Pretorius.
Please click here to see Q3 Declaration of capital distribution
Share