Business News of Tuesday, 6 May 2003

Source: .

GT Withdraws Tariff Increase

The Ghana Telecom has withdrawn the tariff increase it announced earlier, in conformity with the directives of the National Communications Authority, NCA.

The upward adjustment of the fixed network to mobile tariffs was frowned upon by the general public for obvious economic reasons and according to the NCA the action contravened certain items in the licence it issued Ghana Telecom to carry out its operations.

The public reaction, which is understandable, could however compromise the quality of service to subscribers according to a Telecom Consultant, A.S.Harruna Attah.

According to him the NCA did not state that tariffs could not be adjusted, but was insisting on the legal and procedural framework to be satisfied for any proposed adjustments adding that they could however have a legal option, which they may be examining.

He added that there is an agreement between Telecom service providers, which among others stipulates that when a call originates from a subscriber in one network (say Ghana Telecom) and terminates at a subscriber terminal in say Celltell, the Ghana Telecom will pay for the use of Celltell's equipment and vice versa.

Ghana Telecom's problem is that the tariff for the calls originating in its network is cheaper than calls originating from mobile service providers the consultant explained.

A certain element of 'subsidization' exists he said, adding that in applying the rules and regulations the regulatory body must as a matter of duty seek to harmonize these 'interconnected' tariffs so that the subscribers can be assured of a reasonable quality of service.