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New rates to stimulate competition

Article - February 1, 2012
The NCA has set new telecoms connection rates for 2012-2014

Ghana’s telecoms regulator, the National Communications Authority (NCA) has set a new interconnect termination rate regime for the country’s telecoms operators. It replaces the previous set of rates which expired on December 31, 2011.

According to the regulator, the new rates, which took effect from January 1, 2012 were set after consideration of market conditions and submissions made by telecoms operators. In a recent announcement the Authority made the following determination for implementation by all operators, with effect from January 1, 2012:

a) That a single 24-hour interconnection rate shall be applicable;
b) That the interconnect termination rates for voice calls originating from fixed and mobile networks in Ghana shall be charged at 5.00 Gp for the year 2012, and glide to 4.50 Gp and 4 Gp for years 2013 and 2014 respectively;
c) That the interconnect termination rate for SMS on all mobile networks in Ghana shall be at the cost of 0.7 Gp for the year 2012, and glide to 0.60 Gp and 0.50 Gp for the years 2013 and 2014 respectively;
d) That the incoming international transit interconnect termination rate for all calls shall be maintained at its current rate in accordance  with the Electronic Communications (Amendment) Act, 2009 (Act 786).

“Furthermore, after further consideration of industry dynamics, the NCA hereby implements asymmetric interconnect termination rate for voice calls as a catalyst to further deepen competition in the market. This asymmetric interconnect termination rate regime applies to new entrants as well as Operators with less than 5% of subscriber market share,” the NCA said.

Consequently, asymmetric interconnect termination rate regime has been considered for Glo Mobile and Kasapa Telecom at 4.00Gp for a period of 24 months, the NCA indicated but “notwithstanding the condition, should either of the two Operators attain a subscriber market share of 5% before the expiry of the 24-month stipulated period that Operator shall cease to enjoy this consideration.”