Telco firms seek NCA intervention on tariffs

In Ghana smaller telecom companies, which are being led by Airtel Ghana, are now seeking cover under the National Communications Authority (NCA) against low tariff promotions held by larger telecom operators such as Vodafone and Tigo.

According to a report by Adom News, Airtel has written to the NCA and proposed a number of regulatory regimes including controls on off-net and on on-net tariffs and the need to declare a significant market player (SMP) as a tool to control competition.

Subsequent to Airtel’s proposal, NCA implemented a GHP 4 per minute minimum interconnect rate, which was accepted by all, and then asked each operator to do their respective position papers on the on-net bit.

According to Adom News, the mobile operators were unaware that it was Airtel that made the proposal to the regulator. It turned out that MTN took a neutral position while Vodafone and Tigo have expressed opposition.

Glo joined Airtel to support the proposed protectionist policy while the smallest operator, Expresso, is said to be opposed to the move to control on-net tariff, which is meant to protect smaller firms. The NCA still went ahead and proposed a minimum on-net tariff of GHP 4 per minute, dividing the telecom industry.

Two of the telcos are currently in court opposing the move. According to Adom News, Airtel Ghana admitted that it did write to the NCA and made those proposals to ensure the general sustainability of and fair competition in the industry.

Adom News revealed that Vodafone and Tigo have taken the matter to the Electronic Communications Tribunal seeking to thwart the move because they believe it is not in the interest of the consumer, who deserves the freebies if a telco can afford it. The tribunal is yet to set a date for hearing to begin.
Credit: itnewsafrica.com