Skip to main content

NCA sets new call/SMS termination rates for 2012-2014

The National Communications Authority (NCA) has set a new call and SMS termination rate among the country’s telecoms operators for the period 2012 – 2014.

The new rate, which takes effect from January 1, 2012, replaced the old one set in 2008 and expired December 31, 2011.

Until the new one was set, telecom operators paid each other 5Gp per minute of every call that originate from one network and terminate on another network.

So for instance, if a Tigo customer makes a call to MTN, and Tigo charges 8.4Gp per minute, Tigo will pay MTN 5Gp from that money, because the call terminated on MTN, and vice versa.

But a statement on the NCA’s website said for the rest of 2012 the call termination rate will remain 5Gp then reduce to 4.50Gp in 2013 and finally reduce to 4Gp in 2014 before the NCA will decide on another possible review.

“The interconnect termination rate for SMS on all mobile networks in Ghana shall (also) be at the cost of 0.7 Gp for the year 2012, and glide to 0.60 Gp and 0.50 Gp for the years 2013 and 2014 respectively,” the statement said

The NCA said incoming international transit interconnect termination rate for all calls shall be maintained at its current rate in accordance with the Electronic Communications (Amendment) Act, 2009 (Act 786).

The current interconnect rate for international incoming calls is 8.25 cents, which means if, for instance, an international call comes through the Vodafone gateway and terminates on an Airtel number, Vodafone will charge the fixed 19 cents per minute and pay Airtel 8.25 cents.

The statement said new rate regime was due to consideration of the market conditions and submissions made by the operators.

“Furthermore, after further consideration of industry dynamics, the NCA hereby implements asymmetric interconnect termination rate for voice calls as a catalyst to further deepen competition in the market,” the statement said.

It noted that the asymmetric interconnect termination rate regime applies to new entrants, like Glo, and operators with less than 5% of subscriber market share, like Expresso.

In effect, even though the rest of the operators would pay 5Gp for domestic call terminating on another’s network in 2012, Glo and Expresso would pay 4Gp because of the reasons stated by the NCA.

But “notwithstanding the condition, should either of the two operators attain a subscriber market share of 5% before the expiry of the 24-month stipulated period, that operator shall cease to enjoy this consideration,” the NCA said.

Comments

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...