RE: lug_: Inter-Operator Call Fees

[Mark Tinka]

Title: Message

I actually doubt 0/= was practically suggested, it was just a line of thought. Of course, it's impractical.

 

Having said that, enforcing the same inter-operator connect charge would definitely level the field. Depending on the aggressiveness of the operator, some will see it as a constant cost, others will see it as a cost above revenue, while others will see it as a cost below revenue.

 

These 3 factors will vary based on the level of competiteveness of each of the players, as it would cost the client the same to place calls to the other operator from the other operator. The only area that would recieve heavy price competition would be own_network charges, and international call charges. Most other areas would be left to overall superiority of provisioning of services.

 

If it costs the client the same to connect to another network from another network, then what really motivates them to prefer one network over the other? This goes for both voice and data communications off the operators' bandwidth.

 

Regards,

Mark Tinka
Technical Manager, Africa Online Swaziland

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of [EMAIL PROTECTED]
Sent: Thursday, February 26, 2004 1:24 PM
To: [EMAIL PROTECTED]
Subject: lug_: Inter-Operator Call Fees

a zero tariff is not practical, you are asking the operators to install switching and interconnect capacity without having a revenue stream from it. I don't think that would be a practical solution. Typically total national interconnects for a big network (in uganda) will use over 6 Meg of bandwidth not forgetting the switching resources and as such an operator would want to get revenue after investing in that kind of capacity.

 

actually to correct you when MTN started it requested for much lower interconnect tariffs than we have today when negotiating with celtel and utl but they refused naturally, since it meant more revenue for them in the beginning. Ever since then it is now mtn that is benefiting since most interconnect traffic is incoming to MTN however none of the other operators have so far tried to push for lower interconnect tarriffs.

 

UCC should come in and enforce a strategy that will benefit both operators and customers. not really sure if they are doing anything on this though.

 

In my view the more practical solution would be to make operators charge the same for inter and intra network calls (for national calls). as you say UCC needs to lead it though, I don't see any operator trying to change the staus quo.

 

Patrice Aliakai

Network Group

MTN Uganda

[EMAIL PROTECTED]

 

Off:   +256 31 212400

Cel:  +256 77 212400

Fax: +256 31 212288

-----Original Message-----
From: Patrick Ssesanga [mailto:[EMAIL PROTECTED]
Sent: 26 February 2004 12:29
To: [EMAIL PROTECTED]
Subject: RE: lug_: Re: Inter-Operator Call Fees

Of course a 0 tarrif would make a difference. Looking at the environment 2day I must admit that branding plays a much bigger part in attracting customers than just price. I have used all three networks and quality-wise - I hand it to Celtel, probably because there are fewer subscribers.

I think the inter-connection fees have to be regulated and infact enforced by UCC. The problem is that the individuals there might not be 'interested' in doing so. And of course operators such as MTN are using that tariff to block interconnection. You could argue that they are behaving like M$! Since all networks are local UCC can help by insiting that users pay the same for the interconnection as they pay on their network (problem solved). Then let the operators fight their marketing/branding/pricing wars.

I think that's the way to go. It's only UCC that can do the job as I can't see how the operators can agree on that between themselves especially given how some of them exploit the situation.

- ses

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