In a bid to reduce the price of making calls across networks in Uganda, Uganda Communications Commission (UCC) the telecommunications regulator, has reduced the price of call interconnection fees from UGX 65 to UGX 55.
In the telecom jargon, interconnection fees are charges telecom companies charge each other to allow subscribers from other networks to call the host network in simple terms its the fee an MTN will pay to Airtel (and vice verser) for calls done across networks.
The UCC director industry affairs and content development, Ms Juliana Mweheire, announced this during the 2019 Uganda Telecom Forum held in Kampala last week. She said that interconnection rate for SMS and phone calls will be reduced to cut back on the cost of making phone calls.
“The mobile termination rate will be revised from Shs65 to Shs55 per minute for voice while SMS termination rate will be revised from Shs7 to Shs5,” she said, noting the changes would be effected beginning today (July 1).
Mr Ibrahim Bbosa, the UCC spokesperson, said at the weekend that the commission has the powers to set a maximum amount on interconnection rates /termination fees to reduce the cost of calling. He said,
“When you regulate the wholesale price, you expect that the savings that operators make should be passed on by giving lower tariffs. But sometimes it is not the case, adding that the cost is expected to reduce further to UGX 45 per minute next year.”
It should be noted that the even if the cost to call across networks has been cut, telecoms will not necessarity also reduce the amount charged when calling a different network.
Mr Bbosa told the Daily Monitor that some telecoms could decide to keep the current charges while others might respond to industry dynamics.
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