The largest player in the telecommunications sector in South Africa, Vodacom group's shares took a dive on the stock exchange as at the close of the market. Also hit by the trend was the MTN group which is the biggest player on the African continent. This is as a result of government's new resolution to reduce call costs to citizens by any means possible. Analysts say the move is due to next year's elections in the former apartheid enclave.
On the contrary however, Telkom witnessed a 5% increase due to the same announcement. Experts posit that the new move while aiming to favour the populace, will also favour the smaller players like Telkom and Cell C. This is because mobile termination rates (MTR) would come down to 10 cents from 40 cents which is presently obtainable. Analysts however want the government to enforce the resolution as soon as possible so that call tariffs become cheaper.
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