Converging communications 2007

CONVERGENCE IS A SLOW AND GRADUAL PROCESS

  Mike Brierley CEO: MTN Network Solutions While the local ICT industry talks a lot of big talk about convergence, it is actually a slow process, meaning that the changes in the market will be very gradual.

08 July 2009

  Mike Brierley CEO: MTN Network Solutions

There has been a tendency to focus more on the least cost routing (LCR) model, because in the VOIP space the only areas where one can genuinely offer savings are with calls between branches and on international calls. Part of the problem is that interconnect rates are too expensive, and hence VOIP cannot compete with LCR solutions. Even though Telkom and the cell operators are offering interconnect, I don’t know of anyone who is actually moving any volume of real VOIP calls yet. Part of the reason for this is that most businesses are waiting to see what sort of ruling ICASA makes regarding interconnect rates, as this could have a major impact on the telecoms marketplace.

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