Namibian interconnection rates converged at NAD 0.60 (USD 0.07)

Posted on July 9, 2009 / 3 Comments

Namibian Communications Commission (NCC) has ordered the convergence of interconnection rates between operators (Cell One, Telecom Namibia and MTC) through the introduction of a standard charges structure; rates will be reduced bi-annually over a two-year period. Symmetry between mobile and fixed termination rates supports fixed-mobile convergence and removes distortions caused by previously higher mobile-to-mobile rates.

A benchmarking study conducted by Research ICT Africa, LIRNEasia’s sister organization, on behalf of the NCC indicates that the cost of termination of an efficient operator in Namibia is NAD 0.24 (USD 0.03). The prescribed ceiling for the termination rates on 1 January 2011 includes a 25% mark-up over the estimated cost of termination. Any other operator can request a revision of termination rates by demonstrating that its forward-looking long-run incremental cost of termination is above the prescribed ceiling, through the use of the LRIC methodology.

More information is available here.

3 Comments

kapila Chandrasekera
July 16, 2009, 3:15 am
Nirmali how do I get a copy of the report also need to contact prof urgently

thks

Kapila
Nirmali Sivapragasam
July 16, 2009, 8:40 am
Hi Kapila,

The link to the report is: http://www.ncc.org.na/page.php?pn=publication

Our contact numbers are available here: http://lirneasia.net/contact-lirneasia/.

–Nirmali
Rohan Samarajiva
July 21, 2009, 2:05 pm
South Africa Connect Public Seminar

Interconnection Rate Benchmarking: How Namibia dropped its termination rates by nearly half

Regulators across Europe and Africa agree that termination rates should be based on the forward-looking long-run incremental cost (LRIC) of termination of an efficient operator. Termination rates at cost of termination will remove economic distortions witnessed in Europe and Africa today and prepare the markets for a smooth transition to IP-based Next Generation Networks. The presentation reviews the latest developments and trends for interconnection rates and shows how interconnection benchmarking was used in Namibia to set termination rates. Implementing LRIC is challenging, expensive, time-consuming, and the required information is often not available in developing countries. The benchmarking methodology benchmarks termination rates, termination costs and regulatory best practice.

The correct date for the Seminar is Tuesday, 28 July 2009 at 4pm for 4.30pm

Please note the the correct RSVP address – mndlovu@the-edge.org.za.

The seminar deals with the case study of Namibia, where the Namibian Communications Commission (NCC) has recently introduced a charge structure which reduces interconnection rates to N$0.60 For background reading, visit: http://tinyurl.com/interconnect-namibia. The Namibian Interconnection benchmarking study commissioned by the NCC can be found at: http://www.ncc.org.na/page.php?pn=publication.