NAIROBI: Ugandans will soon enjoy lower telephone rates once the Uganda Communications Commission (UCC) implements the new interconnection rates. Interconnection rate can be defined as the cost of routing calls from one telecommunications operator to another. It is the commercial and technical framework through which telecommunications operators connect each other's infrastructure to allow for cross network communication. The move follows the release of findings of a study commissioned by UCC last year conducted by PWC (UK). It sets the new interconnection rate at Sh98 compared to the current rate of Sh131. The study, entitled “Review of the Interconnection Cost Model for Telephony Services in Uganda” says the figure should be further be reduced to Sh84 in 2013 and then to Sh73 in 2014. UCC Executive Director Godfrey Mutabazi said the Communications Act (Cap 106 Laws of Uganda) mandates UCC to regulate interconnection and access systems. The law further mandates that the Commission to issue minimum guidelines within which operators may negotiate interconnection rates. These guidelines may include reference interconnection rates. Mutabazi also notes: “The Commission places much emphasis on the principle of cost orientation in determination of interconnection rates in the country. These proposed rates were arrived at through a thorough consultative process with the licensed telecom operators and other stakeholders.”
