Page 78 - SAMENA Trends - May 2020

WHOLESALE UPDATES SAMENA TRENDS

Ukrainian Regulator Says Termination Rate Cut Will Benefit End Users

Ukraine’s National Commission for State Regulation of
Communications & Informatization (NCCIR/NKRZI) has issued
a decision cutting the unified wholesale mobile termination rate
(MTR) and long-distance voice call termination rate to UAH0.08
(USD0.00297) per-minute from UAH0.12, effective from 1 January
2021. The regulator based its decision on data from operators for
2019 showing the actual cost of terminating network traffic was
UAH0.03-UAH0.06 a minute, and indicated that it will continue
to reduce rates to gradually approach cost levels. The NCCIR
claimed that interconnection rate reductions will enable operators
to offer consumers more attractive off-net calling tariff plans,
with benefits for end users including: increasing the volume of
package minutes for all types of telecommunications services
for the same cost; reducing the cost of long-distance calls; and
reducing the demand for owning several mobile SIM cards for
different operators (due to varying inter/intra-network rates).

Big Drop in MTN South Africa Wholesale Revenue

MTN has published its quarterly trading Cell C revenue remained unrecognized. despite the economic environment. The
update for the period ended 31 March 2020, MTN added that it had commenced phase company recorded a quarterly increase of
showing a significant drop in wholesale two of its expanded roaming agreement 75,000 subscribers in South Africa. Service
revenue for the company’s South African with Cell C, effective 1 May 2020. “MTN revenue for its South African business
business. Wholesale revenue declined South Africa’s (MTN SA) performance declined by 6.2%, which the company
by 44% year-on-year, which MTN said was negatively impacted by the wholesale attributed to the effects of its Cell C
was largely attributed to the loss of the business, as we continue to account for roaming agreement and the loss of the
Telkom roaming agreement and the Cell C roaming revenue on a cash basis, Telkom roaming agreement. The company
effects of lower recognized revenue from as well as the loss of revenue from the said that if the effect of national roaming
Cell C. “This resulted from our roaming Telkom roaming agreement which came to agreements was discounted, the quarterly
agreement with Telkom having concluded an end in June 2019,” said MTN Group CEO service revenue for its South African
at the end of June 2019 as well as lower Rob Shuter. MTN added that that the first- operations would have remained flat. “We
revenue recognized from Cell C due to quarter performance of its South African are encouraged by the stabilization of the
the ongoing cash basis of accounting,” business was impacted by the global consumer prepaid business which was
MTN said. “For Cell C specifically, roaming outbreak of the COVID-19 pandemic, affected by the implementation of the new
revenue continued to be accounted for on currency depreciation, and load-shedding. out-of-bundle data usage rules,” Shuter
a cash basis in line with IFRS 15 and MTN MTN South Africa noted that its prepaid said. “Also pleasing was the continued
SA recognized approximately R292 million business has begun to recover from recent progress in the enterprise business, which
in revenue during the quarter.” MTN said regulation changes, and its postpaid recorded 8.2% service revenue growth.”
that as of 31 March 2020, R450 million in customer base has seen an increase

ANCOM Proposes 30% Cut to Fixed Termination Rate

Romania’s telecoms regulator the National per minute to EUR0.00097 per minute cover national calls and those made to and
Authority for Management and Regulation with effect from 1 August 2020. The new from the European Economic Area (EEA),
in Communications (ANCOM) has rate would apply to wireline operators unless existing international agreements
launched a public consultation regarding designated by ANCOM as having significant allow different charges to be imposed.
its proposal to reduce the fixed termination market power, including Telekom Romania, Interested parties are invited to submit
rate (FTR) from EUR0.0014 (USD0.00153) RCS&RDS, Orange and Vodafone, and comments and proposals by 18 June.

78 MAY 2020