The Tanzania Communications Regulatory Authority (TCRA) has
reduced call interconnection rates by 69 per cent to 34/92 from the previous 113/-.
With high interconnection rates, it is only four per cent of
Tanzanians who use off net calls, according to TCRA director general, Prof John
Nkoma, as majority prefer on-net calls (calling within the network) as they
avoid exorbitant charges associated with calling a different network.
Prof Nkoma told journalists and representatives from
telecommunication firms in Dar es Salaam yesterday, that all telecommunication
companies would be supposed to consent to the new interconnection rates by
March 31, this year, even though the rates will start being applied as early as
March 1, this year.
“Taking into account that telecommunication sector is very
competitive in the market, we gave them freedom to make decision on the amount
they would like to interconnect, but they failed. This made the authority to
consult PricewaterhouseCoopers.
“We intervene where we see market failure, especially when
telecom companies fail to reach agreement on the interconnection rates,” said
Prof Nkoma
From March 1, 2013, Prof Nkoma said interconnection rates
from one network to another will be Sh34.92, January 1, 2014 (Sh32.40), January
1, 2015 (Sh30.58), January 1, 2016 (Sh28.57) and January 1, 2017 (Sh26.96).
“These are directive interconnection rates,
telecommunication companies are free to lower it even to zero, and, TCRA will
be ready to make some reviews where necessary and upon justified reasons of
doing so,” said Prof Nkoma.
He said the exercise was not new because since 2004, the
authority has been doing so.
“The first determination on interconnection rates was made
in 2004, the second determination was done in 2007 and the third determination
has been done this year,” according to Nkoma.
“The authority dismisses arguments by some operators that
reduction of interconnection rates will hinder the roll-out and expansion of
networks in the rural areas because there is no direct relationship between
interconnection rates and the investment or roll-out in the rural areas,” said
Prof Nkoma in response to telecoms concerns
He said TCRA believes that the Infrastructure Sharing,
Universal Communication Service Access Fund (UCAF) and the National ICT
Broadband Backbone (NICTBB) if utilised properly will augment efforts to cut
cost and facilitate rollout in rural and underserved areas.
Source: The Citizen, www.thecitizen.co.tz,
reported by Sturmius Mtweve in Dar es Salaam
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