Speaking to the TechCentral Show , Mendes said the move by Vodacom and MTN to raise mobile termination rates - the fees the operators charge each other to carry calls between their networks - was deliberate at a time when voice calls were the most significant contributor to operators' revenues and profits.
Mendes is a former senior executive at Vodacom, having spent 23 years in various roles at the company. He was chief officer for Vodacom's consumer business unit for four years before leaving the company in January 2023.
"If you look at termination rates, they were pretty much not there, but with the entrance of Cell C, those termination rates skyrocketed. If someone has all the market share and you are going to land on someone else's network all the time - you are on a hiding to nothing," Mendes said. "Cell C got handicapped at the start - that's the truth."
Over the years, intervention by communications regulator Icasa has led to a steady decline in call termination rates, which has contributed to a reduction in the cost of retail voice calls in South Africa.
