Telkom considers retrenchments due to increasing competition

Mobile operator Telkom says it is looking at possible retrenchments as its struggles with a tougher regulatory environment and increasing competition from other mobile operators.

Speaking to the media on Monday,  Telkom CEO Sipho Maseko warned of job losses in the wake of stringent ICASA regulations.

Maseko says this follows the publication of a new proposal that would see Telkom continue to subsidise the larger mobile networks.

The CEO has criticised communications regulator ICASA on its proposed new call terminations rates.

Telkom has issued a counter-proposal to ICASA following the publication of a new proposal that would see Telkom continue to subsidise larger mobile network operators.

ICASA has proposed that fixed termination rates should fall by 70% compared with a reduction of only 31% in base mobile termination rates.

Fixed termination rates are rates paid by operators to each other when a consumer makes a call to someone who is on a different network.

Telkom says the new proposal will have an impact on their operating costs and hence lead to job losses.

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