Vodacom Tanzania spooked by proposed cut in interconnection fees

23 Jan 2013

Rene Meza, the managing director of Vodacom’s Tanzanian mobile operation has expressed concerns over a plan by the Tanzania Communications Regulatory Authority (TCRA) to slash interconnection fees, saying such a move would hurt infrastructure investment in the East African nation.

As reported by TeleGeography’s CommsUpdate, 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 TCRA, was 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. The TCRA will decide on the precise magnitude of the cut this month, but in an e-mailed statement Rene Meza said: ‘We have raised concerns with the significant reduction proposed in March 2013 and the basis by which the reduction has been proposed … It is important that interconnect charges are designed to reflect the actual costs of mobile operators and the impact that the reduction will have on investment plans by Vodacom and other national operators.’

Tanzania, Vodacom Tanzania,

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