CRAN reduces mobile and fixed termination rates
The Communications Regulatory Authority of Namibia (CRAN) has decided to reduce mobile and landline termination rates from N$0.10 per minute to N$0.05 per minute – a move that should benefit indirectly to consumers by leveling the playing field for network operators.
The rate reduction, which will take effect on October 1, comes after CRAN conducted a study last year to determine the impact of lower termination rates in the industry. Termination rates are interconnection payments made between operators to compensate each other for traffic exchanges between their networks.
According to the President and Chief Executive Officer (CEO) of CRAN, Emilia Nghikembua, the decision to reduce these charges is important because it is one of the most important cost elements for operators and the reduction will allow greater competition. in the area.
She explained that reducing these fees will not have a direct benefit to consumers in terms of paying less for voice calls. However, she added, consumers will likely benefit indirectly from increased competition in the industry. This, she explained, is due to the fact that 90% of the country’s 2.9 million subscribers use Mobile Telecommunication Limited (MTC), while only 10% use other operators, namely Telecom Namibia, Paratus Telecommunications and MTN Business Namibia.
“This means that the MTC network carries most outbound calls and SMS volumes. As a result, other operators pay MTC more for calls made to the MTC network, compared to calls made from MTC to other networks. Therefore, reducing the termination rate will help other operators to reduce their operational costs and be more competitive,” she explained.
According to CRAN’s Acting Head of Corporate Communications, Hilya Mhani, the reduction in termination rates is one of many interventions that CRAN will implement to produce tangible results for consumers in the form of affordable prices. and an increased choice of products and services, while guaranteeing landscape competition.
Nghikembua confirmed that CRAN is considering additional possibilities to reduce voice call rates to relieve consumers in the medium term. A decision on this will be communicated in due course, she said.