Telkom up on interconnection fee review
| TELKOM SHARES UP ON FEE REVIEW:
Shares in Telkom, headed by chief executive Reuben September, rose nearly 3 percent on a possible interconnection fee review.
Read moreSimphiwe Mbokazi |
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September 10, 2009
Shares in Telkom, Africa's largest fixed-line telephone operator, rise nearly 3 percent on a possible interconnection fee review.
Telkom is trading 2.41 percent higher at 45.11 rand by 10:25 SA time, outperforming a 1.24 percent firmer JSE Top-40 index of blue chips.
Mobile phone operators charge 1.25 rand per minute in peak times for their interconnection fee, a charge to carry calls from each other's networks.
"There is an increasing view in the market that interconnection fees have to come down. Telkom stands to benefit. I think that might be the reason why (it) is outperforming the Top-40 index," says a telecoms analyst. "Vodacom is going to be the most affected operator by (a) review of interconnection fees."
The country's communications watchdog on Tuesday met with local operators to discuss how interconnection fees should be brought down. The watchdog and operators agreed to produce a document by the end of the year on how fees could be dropped.
Vodacom, South Africa' largest mobile phone operator, is down 0.02 percent at 54.99 rand and rival MTN Group trades 0.78 percent higher at 127.99 rand. - Reuters
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