Interconnection Rates

15 January, 2010

This is the third telecommunication wholesale price determination since 2005.  Even though the price control order was to have been lifted as part of the Radisson Accord for the deregulation of the telecommunications industry, the Commission felt it necessary to regulate the whole sale interconnect rates.

Not withstanding the fact that Vodafone had a commercially agreed interconnect rates in place with other network operators; it fully cooperated with the Commerce Commission in this exercise.

Based on submission received from various network operators and its own research and benchmarking studies, the Commission has finally made its determination on the new interconnect rates yesterday. Vodafone Fiji has always operated in compliance to any laws that govern its operations in Fiji. We therefore respect the outcome announced by the Commission as an independent body. 

Whilst, the determination means a drop in interconnect revenues of up to 16% between the networks, there are few positives also that have come out of this determination.

Firstly, there is now a homogenous and non-discriminatory interconnecting rates across the networks, which brings more parity as well as clarity on the interconnect rates.  For network operators a clear path on interconnect rates for the next three years provides a greater certainty for forward planning.  This is good for the industry as well as the consumers.

Secondly, the council has conducted extensive consultation with the various stakeholders and research on similar markets around the world to arrive at the most appropriate interconnect rate for Fiji. This independent determination should put to rest any notion of biased or unfair interconnect rates based on network operators market share.  In this regard, Vodafone is happy that that determination has finally been made public.  This puts to rest a long and ongoing debate from different parties on what should be the appropriate interconnect rate in Fiji.  This definitely provides more certainty in the market place for all stakeholders.

The interconnect rates are applicable at the wholesale level and does not have a bearing on the on-net traffic.  We will conduct our own analysis and reviews of the impact of the new interconnect rates before we finalize any new tariffs and plans going forward.

The consumers are already enjoying the benefits of competition in the telecommunications market since last year. Numerous promotions on a regular basis such as Vodafone’s recharge bonanza gives customers up to five times the value of their recharge which effectively means that the consumers are paying only twenty (20%) percent of the normal charges with free credit valid up to six months.

We would like to commend the Commission for undertaking such a mammoth exercise very efficiently and objectively.  Vodafone Fiji shall immediately commence making the necessary adjustments on its inter-carrier billing front to reflect the new rates.

About Vodafone Fiji:
Vodafone Fiji Limited is part of Vodafone Group Plc, a leading mobile communications company with over 315 million proportionate customers worldwide. Vodafone Fiji which is a partnership with Amalgamated Telecom Holding Fiji provides mobile telecommunications services to over 700,000 Fiji customers. The global company has equity interests in 26 countries and partner networks in a further 33 countries, the largest global footprint.