TCRA proposes 69% cut in interconnection rate

News Wireless Tanzania, United Republic of 18 JAN 2013
TCRA proposes 69% cut in interconnection rate
The Tanzania Communications Regulatory Authority (TCRA) has proposed a decrease in interconnection charges to an average TZS 34.92 from TZS 112. According to the Daily News, the industry regulator wants the new rates to be applied from 1 March. However, operators want a higher rate of TZS 84, arguing that the 69 percent decrease proposed by the TCRA for the first year on a cost-based model was too high. 

Airtel Legal Officer Clara Mramba said the regulator should have considered the operational costs incurred by telecommunications companies when reviewing the interconnection charges. TCRA Director Victor Nkya pointed out that the proposal was a result of a study conducted by an independent consultant, Pricewaterhouse Coopers. The consultant recommended the rate should eventually reach TZS 26.96 in 2017. 

Acting Assistant Director of Telecommunications at the Ministry of Communication, Science and Technology, Samson John, said the interconnection cost model was aimed at reducing costs to consumers. Vodacom Legal Officer Walarick Nitu said the proposed drop did not consider the devaluation of the currency and suggested the rate be reduced to at least TZS 75 in the first year and to TZS 58 in the second year, before dropping to TZS 26 in 2017. 

Categories:

Mobile

Companies:

Vodacom,  Airtel,  TCRA

Countries:

Tanzania, United Republic of

Tags:

Voice services, Network Access, Regulations, Wholesale, Pricing

Related Articles

TANZANIA, UNITED REPUBLIC OF 15 FEB 2013

Tanzanian watchdog confirms 69% cut in interconnection fees

The Tanzania Communications Regulatory Authority (TCRA) has reduced interconnection fees by 69 percent starting 01 March to boost competition and expand subscriber numbers, Bloomberg reported. The rate will fall to TZS 34.92 from TZS 112 and will be cut gradually to TZS 26.96 by 2017. The regulator said it is the considered view of the Authority that traffic patterns will change through an increase of subscribers and airtime use. On 21 January, Vodacom said the reduction in the interconnection fee may curb

TANZANIA, UNITED REPUBLIC OF 24 JAN 2013

Airtel Tanzania slashes on-net call tariffs

Airtel Tanzania has announced that it has reduced its on-net call tariff to TZS 0.10 a second after the first two minutes of the call. MD Sam Elangalloor said it has lowered call rates by 70 percent. Airtel Corporate Communications Director Beatrice Singano Mallya said with effect from 24 January, it will cost Airtel's pre-paid customers less to make on-net calls, adding that there is no need to enrol, as all prepaid customers will automatically enjoy this service on their second minute.

TANZANIA, UNITED REPUBLIC OF 22 JAN 2013

Vodacom Tanzania questions proposed 69% termination cut

Vodacom Tanzania has expressed concern over the proposed reduction in interconnection fees, saying it may curb investment in telecommunications infrastructure in the country. According to Bloomberg, the firm's MD Rene Meza said Vodacom raised concerns over the significant reduction proposed in March and the basis by which the reduction was calculated. The industry regulator TCRA said it may lower the rate by as much as 69 percent to TZS 34.92 a minute from 1 March to boost competition. The regulator will de

Just In

13:09

Utiq replaces CEO

12:57

European Council adopts position on business wallet proposal

12:53

Baidu rejects U.S. 'Chinese Military Company' designation as unjustified

12:43

Nextcloud new release enhances Euro-office, tweaks menu and adds governance tool

Commentary

5 MEI 10:55

KPN: the art of making one-offs structural

4 MEI 14:25

Open Dutch Fiber outlook: time to restart roll-out?

20 APR 10:36

Netflix back to organic growth and doing just fine

11 FEB 12:29

Odido shareholders face tricky exit after abandoned IPO

Background

1 JUN 00:13

The week in telecom: EU telcos push sovereign services as governments question foreign tech investors

23 MEI 23:42

The week in telecom: Starlink ready to go public, Singapore telco M&A and Google courts AI subscribers at I/O

18 MEI 00:31

The week in telecom: US operators mount rural satellite challenge, Cisco cashes in on AI boom

11 MEI 00:53

The week in telecom: Lumen, NTT turn to data centre market to revive growth, Hutchison exits UK

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.