Tanzanian interconnect cut 1 March

The Tanzanian Regulator will go ahead with a cut in the country’s mobile interconnect fees.

This comes after discussions on the proposed sliding scale reduction in the interconnect fees last month. The Tanzania Communications Regulatory Authority (TCRA) said in an official notice that from 1 March this year, the mobile interconnection rate could be cut to TZS34.92 (USD0.022) a minute, from the current TZS112.00. The interconnect rate is projected to drop to TZS 26.96 a minute by 2017.

TCRA said the move followed a report submitted by a Panel of Inquiry on 28 January. Airtel Tanzania Limited, MIC Tanzania Limited and Vodacom Tanzania Limited had rejected the panel’s findings and each proposed different interconnection rates, arguing that a drastic decrease would affect their capacity to invest in the rural areas. 

The Authority said while it “accepts the view that in the short run there will be less revenue to be realized from interconnection by operators who are currently net receivers. However, net payers will experience a reduction in costs by paying less interconnection charges to  other operators. It is the considered view of the Authority that traffic patterns will change through increase of subscribers and air time.”

All operators are required to enter into new interconnection agreements and submit them to the Authority by 31March, 2013.

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