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Interconnection: Dominant operators can charge different rates
Everest Amaefule, Abuja
Dominant operators have been empowered by the Nigerian Communications Commission to set varying interconnect rates for different categories of telecommunication services they provided.
While NCC would ensure that such differences would not result in the distortion of competition, such operators have the responsibility to justify that such charges emanated from elements of costs.
These are contained in the Telecommunications Networks Interconnection Regulations 2003, which has just been gazetted and dispatched to telecoms operators in the country by NCC.
�The dominant operators may set different tariffs, terms and conditions for interconnection of different categories of telecommunications services where such differences can be objectively justified on the basis of the type of interconnection provided,� the regulations stated.
A dominant operator is a company, which has at least 50 per cent of the relevant telecommunications market in a geographical area of the country.
By this definition, the Nigerian Telecommunications Limited has a national dominant position in the fixed line services, while different digital mobile operators have dominant status in different geographical areas of the country.
NCC may also presume that an operator with at least 30 per cent of a relevant market has a dominant market position. By this, MTN Nigeria Communications Limited and Vee Networks Nigeria Limited have national dominant market positions in the mobile sector.
While setting different interconnection rates for different categories of services, the regulations noted, �The burden of proof that charges are derived from relevant costs, including a reasonable rate of return on investment, shall lie on the dominant operator providing interconnection to its facilities.�
The industry regulator had last December fixed the termination rate on fixed services at N5.52 per minute and N11.52 per minute on mobile networks. The ruling generated some controversies that ended in the law courts.
Every dominant operator is required by the Interconnection Regulation to �maintain separate accounts in respect of interconnection services and its core telecommunication services and the accounts shall be submitted for independent audit and thereafter published.�
The Punch, Monday July 19, 2004
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