MTN AND TERRACOM TO AGREE ON INTERCONNECTION PRICES

Telecoms

Rwanda's two major telecom providers, MTN Rwanda and Terracom are expected to sign an interconnectivity agreement, which has been a source of bickering in recent weeks.

The agreement will be coordinated by the national regulatory body, RURA (Rwanda Utility Regulatory Authority (RURA).

The two companies have been undercutting each other's rates in a price war that has resulted in quarrels over connection of some specific numbers. MTN for instance is yet to allow some Terracom numbers on its network.

RURA chief executive, Francois Zimulinda told reporters in Kigali that his agency had hired a team of consultants to help establish rates that telecom giants should charge without exploiting consumers.

Interconnection charges will now be Frw40 (about US$7 cents) for a call from a fixed to mobile phone, while a call from a mobile to fixed phone will be Frw30 (about US$5cents). The consumer will, however pay a little more to cater for taxes and the provider's profitability based on cost-plus pricing.

East African Business Week