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Operators to drop roaming charges

By Vanessa Haarhoff, ITWeb African correspondent
Johannesburg, 18 Oct 2006

Telecom operator MTN Uganda is in advanced talks with Kenyan mobile operator Safaricom and Tanzania`s Vodacom in order to establish free roaming charges between the three operators.

This is according to Noel Meier, CEO of MTN Uganda, who says the talks began in February with the intention to launch the service by the end of the year.

Meier notes that both Vodacom and Safaricom have recently been awarded international gateway licences by their respective regulators, and MTN has been in the process of establishing direct interconnection links with them.

He says building a cross-border network will be useful for subscribers in the East African market, which is becoming a strong and influential market. "A large portion of our subscriber bases are economically active in the region and, as the region gains momentum, the need to seamlessly move across countries on a cross-border network will be important."

He notes that the border areas between the East African countries are active trading areas that will allow people to move across borders more freely and remain connected more conveniently.

Meier says Vodacom and MTN are the biggest operators in their respective markets by a considerable margin, which will strategically ensure the biggest regional network in East Africa, accessed by the greatest number of customers.

Meier says MTN Uganda has around 1.3 million subscribers, Safaricom 4.7 million subscribers and Vodacom Tanzania 2.1 million.

The trio also intends bringing MTN Rwanda into the arrangement, creating a more extensive network covering four East African countries, he says.

The agreement so far stipulates preferential roaming rates when subscribers roam on each other`s network and that incoming roaming charges will not be levied when customers roam on each other`s network, he says. Customers will also have the ability to recharge prepaid cards while roaming in East Africa through enhanced dealer distribution networks and the ability to recharge while in East Africa.

Meier adds that prepaid roaming has not gained traction in Africa due to the fact that roaming customers have to pay heavily for incoming calls at the equivalent rate of an international call. "We believe that by removing this burden, prepaid roaming will become an acceptable means of communication and allow for more efficient communication between business entities."

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