Tanzanian govt may cut mobile fees by 69% to drive competition

21 Jan 2013

Bloomberg News writes that the government of Tanzania is considering slashing the rates that mobile network operators charge each other for terminating calls on each others’ networks by up to 69% from March 2013, in an effort to drive competition. Innocent Mungy, a spokesman for the Tanzania Communications Regulatory Authority (TCRA), is quoted as saying that under the proposal, the mobile interconnection rate could be cut to TZS34.92 (USD0.022) a minute, from the current TZS112.00. He added that the TCRA has also acquiesced to a request from domestic operators to start charging fees in the local currency, the shilling, rather than in USD dollars, as has been the case until now.

‘We are doing this to encourage competition in the sector, and to ensure calling is affordable to consumers,’ the TCRA official said. ‘We held consultations with stakeholders including consumers and telecom operators on the matter yesterday and the board will have to make a decision in a week or so but before the end of this month. The rates however have to go down.’

Tanzania,

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