Page 114 - SAMENA Trends - July-August 2022

WHOLESALE UPDATES SAMENA TRENDS

GCRA Issues Final Decision Following

Leased Line Market Review

A final decision regarding market definitions and the designation
of significant market power (SMP) status as it relates to the
provision of leased lines in Guernsey has been published by the
Guernsey Competition and Regulatory Authority (GCRA). In line
with a proposed decision issued by the regulator back in April
2022, the key elements of the GCRA’s final decision include: that
no operator has been designated as holding SMP in the retail
market, while Sure Guernsey has been designated as having
SMP in the wholesale market; and that while the retail market
is not considered to be susceptible to ex ante regulation, the
wholesale market is. Previously, the GCRA has said the purpose
of its ‘Business Connectivity Market Review’ had been to examine
the competitive conditions that prevail regarding the delivery of
business connectivity services in on-island retail and wholesale
markets and apply appropriate remedies where competition is
found to be deficient.

CA, Operators Agree on Interim Termination Rates Following Challenge

The Communications Authority of Kenya (CA) has announced the introduction of new rates, saying the move would negatively
that it has agreed on an interim fixed and mobile termination rate impact on its revenue and profitability, and arguing that the CA
(FTR and MTR) with telecoms operators following a consultative should have adopted a cost modelling approach to determine
process. As such, a rate of KES0.58 (USD0.005) per minute will the termination rates, rather than an international benchmarking
apply from 1 August 2022 for a period of twelve months, after methodology. Following Safaricom’s application, the tribunal
which the CA will issue new rates based on the outcome of an suspended the CA’s decision and the regulator engaged with
ongoing network cost study. The CA issued a determination on telecoms operators to reach a compromise on the rates. The CA
interconnection rates in December 2021 which would reduce the says that with the adoption of the interim termination rate, ‘it is
FTR and MTR from KES0.99 to KES0.12 per minute effective 1 expected that operators will remain incentivized to invest in quality
January 2022. Shortly after this, however, Safaricom petitioned and innovation as consumers enjoy affordable communication
the Communications and Multimedia Appeals Tribunal to block products and services.’

Gabon and Togo Sign MoU on Free

Roaming

Gabon and Togo signed a Memorandum of Understanding
(MoU) on 4 August to abolish roaming charges between the two
countries. The telecoms regulators of the two countries noted the
agreement will result in a substantial drop in the price of mobile
services (voice, data and SMS) while roaming, with outgoing calls
billed at the local rate and no charge for incoming calls. In order
to ensure swift implementation of the deal, a delegation from
Togolese mobile operators Togocom and Moov Africa Togo arrived
in Libreville on 6 August to discuss the technical aspects with their
counterparts at Gabon Telecom (Moov Africa) and Airtel Gabon.

114 JULY-AUGUST 2022