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Globacom Crashes International Call Rates: Offers PTOs N5 per minute

Posted by By Tayo Ajakaye on 2005/04/18 | Views: 633 |

Globacom Crashes International Call Rates: Offers PTOs N5 per minute


International 'hello" may soon get louder and longer. Reason: Globacom, the Second National Operator (SNO), has offered to terminate calls for Private Telecommunication Operators (PTOs) for a new low tariff of N5 per minute.

International 'hello" may soon get louder and longer. Reason: Globacom, the Second National Operator (SNO), has offered to terminate calls for Private Telecommunication Operators (PTOs) for a new low tariff of N5 per minute.

THISDAY learnt that Globacom has approached several PTOs offering them as low as N5.00 per minute in some cases and for some N9.00 per minute to terminate their calls on foreign networks. If the PTOs take the Globacom offer, international call rate, which presently stands at N34 per minute, could come down to N10 per minute depending on the network.

THISDAY also learnt that already, Intercellular has signed a deal with the SNO for the service, although its spokesperson would not confirm the rate. According to Ms. Maureen Egbuna, 'We have signed an agreement with Glo Fixed but for what price, I can't confirm that."

Sources also told THISDAY during the week that Multi-Links was in negotiation with Globacom on the new rates, although a Multi-Link source maintained that the operator was being 'careful" so as not to enter into a deal 'because the SNO could jack up its price to the PTOs' disadvantage".

When contacted on the story weekend, the Marketing Manager of 21st Century Technology, an optic fibre based private telecom operator with headquarters in Victoria Island, Mr. Chris Ajayi, said 21st century is yet to use Globacom for its international traffic. Most of the PTOs told THISDAY that they were yet to take up the offer.

However, the General Manager of VGC Comm, Mr. Gbenga Adebayo said what Gloabcom offered his company was N9.00k per minute and that VGC Comm would not take up the offer. 'Globacom has not shown enough commitment on interconnect agreement. What is behind the N9, you don't know. Some of our subscribers were disconnected by Globacom and up till now they have not been reconnected despite a ruling to that effect by the NCC," he said.

Adebayo defended his stand by referring to an April 13 statement posted on NCC's official website where it stated that in line with section 53 (1) of the Nigerian Communications Act, it had 'issued a Direction to Globacom Limited demanding the payment of a penalty of 34 million Naira to the Commission for flagrantly refusing to reconnect certain private telecom operators 24 days after the expiration of the seven-day period within which to comply."

The direction followed the failure of Globacom to respond to the Notice of Intention to issue a Direction which the Commission had forwared to it on Jan 19, 2005. The NCC has also insisted that Globacom ensures interconnection of its network with all the affected operators.

Before now, the only other operator who could carry international traffic on commercial basis is NITEL. NITEL carries PTO's traffic at the rate of N30 per minute. The N5.00 per minute Globacom offer would allow those PTOs who enter into the deal with Globacom the opportunity to reduce tariff on the international rpoute to an all time low tariff of N10.00 per minute since they made barely N4.00 per minute margin when they were on the NITEL network.

Asked how NITEL would meet this competition, the CEO Mr. Albert Mashi, said what the competition is offering may just be marketing tactics. 'The true situation is that NITEL has a versatile network. We have a SAT 3 which is carrying most of the traffic. It is even enough capacity for the next two or three years before we upgrade it. So, I don't see any real problem with any competition. We don't have congestion. The quality of our system is better because that is cable," he said, adding that for the time being, NITEL is staying with its current fees, although observers believe it would be for a very short time longer as a review is almost underway.

All efforts to reach Globacom for confirmation last night were unsuccessful.

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