Interconnect: Players agree to lower fee

The three major private cellular operators and the National Broadcasting and Telecommunications Commission (NBTC) have all agreed that the firms will adopt a network-interconnection charge of 45 satang per minute of call, which is expected to encourage them to reduce call rates in the future.

Advanced Info Service (AIS), Total Access Communication (DTAC) and True Corp currently pay one another an interconnection charge of Bt1 per minute of call. They will soon sign a memorandum of understanding to adopt the new rate of 45 satang effective July 1, NBTC deputy secretary-general Korkij Danchaivachit said yesterday.

The new rate will also apply to three of these firms' subsidiaries that hold 2.1-gigahertz licences. The licence holders are Advanced Wireless Network, DTAC TriNet Co (formerly known as DTAC Network) and Real Future. Currently these three firms already pay one another an interconnection charge of 45 satang per minute.

The NBTC's telecom committee on Thursday asked AIS, DTAC, True, TOT and CAT Telecom to negotiate a possible agreement on adopting the uniform 45-satang rate, instead of their current varying rates. The former three agreed to do so, while TOT and CAT said they needed time to consider the move.

AIS, DTAC and True each charge CAT 50 satang per minute for the interconnection rate, and vice versa.

The change to the 45-satang rate is expected to encourage the firms to reduce call rates, Korkij said.

The interconnection rate is the fee the networks of the callers pay to the networks of the call receivers on a mutually agreed basis. The NBTC is working out the new standard rate, which is expected to be finalised late this year.

Meanwhile, the NBTC's telecom committee will consider a similar request from AIS, True and DTAC to charge prepaid mobile-phone subscribers Bt1 per day if they have been inactive phone users for 30 consecutive days. The committee will see if this charge is legally possible.

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Article source: http://www.thethailandlinks.com/2013/05/11/interconnect-players-agree-to-lower-fee/