Tariff and Interconnection

The evaluation of tariff applications made by licensed operators is a key activity of the ICTA, as this process will have direct repercussions in terms of the pricing of telecommunication services on the various retail markets. The approach to the analysis of such applications is carried out based on a mix of market driven appraisals, together with the examination of the cost structures underlying the various services.

At the same time, heavy emphasis is placed on the costing of telecommunication services at the wholesale level, with the realm of network interconnection being constantly monitored and improved upon by the Authority, through various telecommunication orders and directives.

Interconnection is one of the most critical areas of telecoms regulation, especially in the implementation phase of the policy objectives of liberalisation and healthy competition respectively. Essentially, interconnection involves the linking up of two information and communication networks, so that users of each network may interact with one another, notably through the use of information and communication services. This is closely associated with the benefits of network externalities, whereby as more users join the existing networks, the net benefit to everyone else on the networks increases correspondingly.