The Department of State for Communication, Information and Information Technology, in conjunction with the Public Utilities Regulatory Authority, has declared a drastic reduction in interconnection rates between GSM mobile and fixed network operators with effect from October 8.

This reduction in tariffs was revealed during a press conference organised by the Department of State for Communications, Information and Information Technology and the Public Utilities Regulatory Authority (PURA), yesterday.

According to the officials, interconnection rates among all the operators in the country would be reduced from D2.50/D2.00 to D1.00, by October 8.

There will be a second phase to the reduction campaign as the authorities intend to bring the tariffs further down from the revised charge of D1.00 to D0.50 by April 8, 2009.
However, as the international gateway is not sufficiently competitive yet, interconnection rates for international calls remain unchanged, the officials stated.

Commitment
Speaking at the occasion, Fatim Badjie-Janneh, the secretary of state for Communication, Information and Information Technology, said the objective of the reduction was to create a balance between investors and consumers. She noted that it would eventually lead to a reduction in the cost of off-net calls (calls across networks).

SoS Badjie Janneh added that her department, as the principal policy maker in the sector, and PURA, as the regulators and implementers of the policies, have recognised that interconnection rates for termination of calls between various telecommunication service providers were “too high”.

“In recognition of such, it was felt necessary to ensure that the consumer is protected from both the financial and physical inconvenience caused by such interconnection rates,” she said, noting that the decision for reduction had arrived through a consultative study, facilitated by PURA and endorsed by her department.

Common stance
According to the Communication, Information and Information Technology secretary of state, this development demonstrates that her department and PURA share a common interest in policies that beneficially impact on consumers.

She noted that both institutions had agreed that in matters such as interconnection, the aim must always be to create low charges.

“Therefore, in view of [developing] the ICT sector, this decision would therefore complement Vision 2020, as espoused by President Jammeh,” SoS Badjie-Janneh noted, while expressing their continued resolve to monitor the market and the consequences of the decision to implement the changes in the interconnection charges, so as to that ensure off-net calls go down as expected.

Customer supremacy
For his part, Alagie B Gaye, the director-general of PURA, described the development “as another milestone” in regulatory practice in The Gambia, noting that they were acting under the mandate derived from the PURA Act 2001.  

He revealed that his institution has determined that the interconnection rates between the four operators could come down, following a study conducted by an International Telecommunication Union (ITU) consultant.

“Given PURA’s mandate to protect consumers, it was our responsibility to ensure that such an economic burden was not shouldered by consumers,” the PURA boss said.
 
He went on to say that the final decision arrived at was based on the core recommendations of the report, which had indicated that the current rates of all operators should be unified and lowered to a target rate of D0.50 bututs a minute, over a period of time called the “phase down period”.

Mr Gaye then stated that the interest of consumers in the drive towards acceptable, affordable, available and accessible services remains supreme.

Reaction
Mr Rein Zwolsman, the chief executive officer of Gamcel/Gamtel, welcomed the development and hailed the Department of State and its satellite institution for this noble crusade.
Zwolsman noted that prior to this decision by the authorities, his GSM company had been collaborating with Comium to ensure cheaper rates for their consumers.

Badara Mbaye, the managing director of Africell, suggested the need for a reduction without touching interconnection rates, arguing that the decision may hamper the growth of the industry.