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CRAN reduces interconnection rates

CRAN reduces interconnection rates

The Communications Regulatory Authority of Namibia (CRAN) this week announced the reduction of interconnection payments/charges made between operators to compensate one another for traffic exchanged between their networks.

This means the new mobile termination rates will be N$ 0.05c/minute (reduced from N$ 0.10c/min), fixed termination rate N$ 0.05c/minute (reduced from N$ 0.10c/minute) and SMS remains at N$ 0.01c per SMS, effective 01 October.

“This decision is important as one of the largest cost components for operators (providing voice services is that of interconnection, and this reduction shall therefore enable more competition in the sector,” said CRAN CEO Emilia Nghikembua.

Nghikembua explained that due to MTC holding 90% of network subscribers, other network operators such as Telecom Namibia, Paratus Telecommunications, and MTN Business Namibia are paying more to MTC for calls made to the MTC network, in comparison to calls made from MTC to other networks.

She added that reducing the termination rate will assist other operators to reduce their operational costs and compete more effectively.

“For now, consumers will not directly benefit from this reduction in terms of paying less for voice calls but may indirectly benefit from increased competition in the industry which will increase the variety of services and products. CRAN is, however, investigating other possibilities to reduce voice call rates, to give consumers relief over the medium term and a decision will be communicated in due course,” said Nghikembua.


About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

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