With the entrance of new operators, the Arab communications markets increasingly have new structures to accommodate the transition from monopoly markets to more competitive ones. One of the more important issues in this transition is the interconnection rates and regimes between the different public networks.
“The Arab communications markets are mainly monopoly markets, especially in the fixed services. As these markets accommodate new telecom operators as a result of liberalization, the presence of fair and regulated interconnection regimes becomes increasingly important and a major factor in the success of the liberalization efforts”, stated a newly released report by the Arab Advisors Group’s Strategic Research Service
The report analyses seven Arab Countries that have cellular duopolies and shows that the interconnection regimes in place vary markedly. The report fully lists the prevailing interconnection rates in each of the examined markets.
According to Arab Advisors Group analyst, Hala Baqain Syria has no mobile to mobile interconnection while it has symmetrical interconnection rates for traffic to and from the fixed networks. Lebanon too has a collect and keep model for GSM traffic. Egypt, Jordan and Morocco have interconnection rates for all traffic and are not necessarily symmetrical. Kuwait has a collect and keep model that is currently being phased out. Similarly, Algeria’s initial collect and keep model for GSM traffic will be ended in 2003.
“The Arab Advisors Group sees no justification for having asymmetric interconnection rates between different networks. The long-term interest of the Arab consumers and the entire communications market at large lies in cost based pricing and competition. Therefore, the responsibility lies on the operators and the regulators, where existent, to insure that the markets move away from interconnection rates that are not entirely cost based. Eventually when the Arab communications markets host healthy competition and fair pricing the trend should move towards the application of the simpler ‘collect and keep’ interconnection model.” Baqain added. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
