Interconnection has been one of the most important regulatory tools in building competitive telecommunications voice markets. At the same time, interconnect charges have become significant source of revenue for many large telecom operators.
Interconnection has been one of the most important regulatory tools in building competitive telecommunications voice markets. At the same time, interconnect charges have become significant source of revenue for many large telecom operators.
This situation has led to significant conflicts between operators and regulators as regulators drive interconnect termination fees downwards. For example, on Q1 2014, Vodacom South Africa reported a reduction of R409 million ($US34.2M) in revenue because of lower mobile termination rates.*
While reduction of interconnect fees can have positive benefits for smaller players, larger operators loudly claim that the reductions will significantly reduce their ability to invest in network infrastructure.
Against that backdrop, no matter what the absolute pricing level of interconnect fees, deriving the maximum benefit out of interconnect activities is essential for operators and for the market in which they operate.
To learn best practices in managing the commercial, administrative, operational and regulatory aspects of interconnection, attend ‘Best Practices in Interconnection' from 18-22 May in Amsterdam.
Image by Victorgrigas (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons