Windhoek
The Communications Regulatory Authority of Namibia (CRAN) on Tuesday hosted an oral hearing to consult stakeholders in the telecommunications sector on the report of the benchmark changes study, whose mooted regulations it intends to enforce.
In 2013 the CRAN board of directors decided not to approve Telecom Namibia’s Online Time Division Multiplexing (TDM) connect tariffs submitted in December 2012.
CRAN acting CEO, Jochen Traut, said the board’s decision was based on factors such as that current pricing impairs competition, is too high and not sufficiently disaggregated.
“We are here to discuss the cost study and the outcome – to explain to the industry the methodology used and the results. Only once we have agreed will CRAN start with the rule making process,” he said.
Other factors include that the current margin between wholesale and retail pricing is low – keeping in mind that Telecom Namibia competes downstream and upstream with other licensees, he said.
He added that CRAN does not allow other licensees enough discount to fairly compete with Telecom Namibia (TN).
Traut said CRAN is of the opinion that reduced line costs will not only lead to more effective competition in the market, but will also lead to lower prices for the end customer.
“The Act is very clear that the costs to customers for telecommunication services should be just, reasonable and affordable. And that there should be fair competition and customer protection in the industry,” he noted.
Due to the fact that parties could not agree on the rate, Traut said they resolved that a Public Switched Telephone Network (PSTN)- Leased Line cost model be developed by CRAN to determine the wholesale cost of such a network call organisation, and termination and the provision of leased line services as contained in the government gazette of May 25.
The purpose of the proposed PSTN-Leased Line cost study is to determine the actual cost for providing leased line services in accordance with Section 51 (2) and (3) of the Act.
He said mutual trust between CRAN and ICT stakeholders is of paramount importance, as they strive to continue being a regulator that is cognisant of the needs of various interested parties who are affected by the regulations.