Telecoms regulator cuts interconnection charges

The Malta Communications Authority yesterday published revised lower wholesale interconnection charges for Maltacom, Vodafone and Go Mobile.

The MCA said it was expected that the reduction of wholesale interconnection rates would increase the potential for sustainable competition and facilitate access to the market for new entrants.

"With the application of these new interconnection rates, the MCA is expecting that retail tariffs for both mobile-to-mobile and fixed-to-mobile calls will go down as a result of this decision which, in turn, could lead to a significant boost to voice traffic", a spokesman said.

Interconnection is a process that allows different providers of public electronic communications services to establish voice and data transmission connections between each other. This allows subscribers on one network to communicate with subscribers on another network.

The revised interconnection rates outlined represent significant reductions from the rates applicable in 2003/2004 for all three operators.

Such a reduction is the result of a detailed cost accounting analysis carried out by the MCA in consultation with the operators.

This process is in line with the MCA's regulatory strategy of establishing interconnection rates that follow the basic principles of cost orientation and efficiency.

As a result of their current dominant status in the respective markets, Maltacom, Vodafone and Go Mobile have an obligation to provide interconnection promptly and efficiently.

For the first time, the new interconnection rates for Maltacom plc include rates for wholesale call origination.

This facility should provide consumers with the potential for direct access to services provided by alternative operators on a competitive basis, as established in the Carrier Selection and Carrier Pre-Selection Decision published by the MCA in May 2004.

The new charges will become applicable retrospectively with effect from October 1 this.

Copies of the Interconnection Pricing Review 2004/05 - Decision Notice can be downloaded from the MCA's website at www.mca.org.mt or obtained free of charge from the MCA offices.