NBTC hopes lower interconnection rates will encourage operators to cut call tariffs

WEDNESDAY, NOVEMBER 09, 2016
  NBTC hopes lower interconnection rates will encourage operators to cut call tariffs

THE NATIONAL Broadcasting and Telecommunications Commission’s board yesterday approved new network interconnection rates for voice service provided by mobile-phone and fixed-line operators, in a move that it hopes will encourage companies to cut their call tariff rates.

  The new rates come into effect on January 1.
 NBTC member Pravit Leestapornvongsa said the watchdog hoped the new rate for mobile service would help small and medium-sized mobile-phone operators, including mobile virtual network operators (MVNOs), to survive among intense price competition from incumbent mobile operators.
 “The new rate will reflect the real cost of the voice service, which will benefit MVNOs and help them offer lower tariffs to specific market segments,” he said.
 The interconnection rate is the fee that the network of an outgoing call pays to the network of the call receiver on a mutually agreed basis per minute. 
 The new rate for mobile-phone voice service will be Bt0.27 per minute, a drop of 21 per cent from the current Bt0.34 per minute. The new rate comes into effect on January 1 for one year, and will drop by another 30 per cent to Bt0.19 per minute in January 2018.
 Meanwhile, the interconnection rate for fixed-line service will be Bt0.31 per minute from January 1, a drop of 9 per cent from the current Bt0.34 per minute. A further fall 9.6 per cent to Bt0.28 per minute will take place in January 2018.
 The watchdog is hoping that the lower interconnection rates will force the phone operators to adjust their tariffs by introducing lower packages, NBTC secretary-general TakornTantasith said.
 According to the NBTC office, the ceiling call rate for 1800MHz/900MHz voice services is Bt0.69 per minute, while the ceiling for 2.1GHz service is Bt0.82 per minute.
 At the end of the third quarter, the average call tariff among the country’s mobile-phone operators was Bt0.63 per minute for 1800MHz/900MHz services, and Bt0.67 per minute for 2.1GHz service.
 In another matter, the NBTC yesterday held a press conference to announce the auction of 16 auspicious mobile-phone numbers on November 27. 
 The agency has set the starting bid price for two numbers – 08-8888-8888 and 09-9999-9999 – at Bt20 million each, while the bidding will start at Bt6 million each for another 14 lucky numbers, including 09-0000-0000, 09-1111-1111, 09-2222-2222, 09-3333-3333, 09-8888-8888 and 06-4444-4444.
 The NBTC will transfer all proceeds from the auction to the state coffers.