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OTEL Telecoms a licensed Voice and Broadband Service Provider in South Africa today announced the launch of its vTransit Service that will take advantage of the new court ruling which allowed ICASA to forge ahead with the MTR rate cut for six months.

Johannesburg, 22 April 2020, OTEL’s vision of low cost communication turns over a new leaf in the industry by offering call rates at interconnect cost to its Channel Partners and Enterprise clients via its vTransit (Virtual Transit) service. The new service focuses mainly on infrastructure rather than call rates which is now regarded as a commodity. It will help VoIP Service Providers and Wholesalers with the agility to shape various billing plans accommodating their clients requirements and usage patterns, thus rapidly increasing its voice traffic volume.

 

“This new service offering further strengthens our strong alliance with OTEL’s Channel Partners nationally, now giving them equal footing to compete with the first tier VoIP providers in South Africa, ” said Mohammad Patel, CEO of OTEL Telecoms “Our Enterprise clients with an in-house technical team can take full advantage of this offer since most meet the minimum requirements and cost to upkeep a transit service.”

 

Whilst the recent judgment by Honorable Judge Haseena Mayat who found ICASA’s regulations unlawful and invalid, the reduction of the MTR call rates has gone ahead.

 

OTEL’s Operations Manager, Damien Ellis comments ” This new service will greatly increase the VoIP Providers profitability and decrease the enterprises’ call costs since the SIP Trunking connection is at a fixed price determined by usage requirements.”

The after effect of the MTR rate reduction in the channel is already showing, as Nashua Mobile plans to close its doors, and some other service providers plan to follow suit. Survival will rely on what strategy the affected service providers take.

Patel continues, “The industry has changed tremendously over the past few years. Channel Partnership model needed a revamp from percentage based commission to ‘pay-as-you-grow’ infrastructure rental. This puts all channel partners in a very comfortable position where they can now dictate their own selling price rather than be forced to sell at the providers stipulated rates. Enterprises no longer need to source for the lowest rate as no rate will be lower than inter-connect cost.”

vTransit offers a trial period before signup. For more information on OTEL’s vTransit Service, interested parties may contact [email protected] or 010-786-0200