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Services > Interconnect

Negotiation of agreements and management of interconnect departments


  • National Interconnection
    Interconnect revenues and expenses are usually the largest cash flows in a telecommunications carrier; this is especially so for new entrants with small market shares and for whom most calls are off-net. Such interconnection fees can be larger than retail revenues in the first years of operation.
    Compounding this is the confusion arising from recent South African Government interventions in interconnect termination rates, especially ignoring new generation technologies such as VOIP. This makes business planning for a new telco extremely risky. In the absence of regulation on these rates negotiations between a new entrant and an existing major telco need to be handled optimally and concluded at rates which will allow the new telco to survive.
    NewGen Consultants have vast executive experience in both late entrant telcos as well as the older dominant telcos and thus bring an appreciation of both party’s positions to the negotiation.
  • International Interconnection
  • Since deregulation the South African telcos are all entitled to implement and manage their own international gateways. The tendency is thus to dis-intermediate third-party carriers. And the huge selection of suitable carriers and their volatile termination rates, implies that conclusion of optimal agreements at a wholesale level will facilitate competitive retail rates for overseas calling. NewGen Consultants have managed these contracts and carrier relationships for a major telco within South Africa and are able to offer managed service solutions within Interconnect departments

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