CALL-BACK RULING DEALS NEW BLOW TO SA TELKOM’S PROFITS

Telecoms

Telkom’s profits are facing a new threat after approval was granted to a form of call-back service that will let its customers make international calls without using Telkom’s lines.The revenue of SA’s three cellular operators could also be severely dented after the Independent Communications Authority of SA (Icasa) granted a licence to Pinnacle Technology, legalising its call-back service.

Pinnacle claims its Call-OnDemand technology will slash the cost of international calls 40%-84%. It works by letting a caller send a signal to an offshore operator, which calls them back with a dial tone. The caller then dials internationally on bandwidth supplied by a global player such as AT&T or Sprint.Pinnacle has formed a new subsidiary, eTel, to launch the service in December, and expects 80% of the top 500 companies to be using it by next April.

Business Day