The Commerce Commission is investigating all telecommunication service providers for price collusion.
Commission chairman Dr Mahendra Reddy said a meeting took place with all service providers and the commission on Monday where a new directive was issued whereby all service providers are to adhere to the USA16.5 cents, create a new bank account for all inbound and outbound international mobile calls and provide international calling identifications.
This is in light of allegations that certain companies colluded to undercut the Commerce Commission’s price control order on inbound international mobile charges from US16.5 cents to US13 cents.
Under the US16.5 cents, Government receives three cents per minute levy that was confirmed by the Attorney General Aiyaz Saiyed-Khaiyum in November 2o10 to be used for the development of the Information Communications Technology Sector.
Dr Reddy said operators have been given a three-month timeframe starting on March 2011 to comply with the directive or face harsh penalties.
“The commission in November 2010 made a determination with respect with the wholesaling Internet connections rate in the domestic market as well as the inbound international voice traffic termination rate,” he said.
“We raise the inbound international voice traffic termination rate from 23 cents to 30 cents Fijian equivalent to US16. 5 cents, the idea is to earn more foreign exchange for the country.”
Dr Reddy said because of the price collusion Government was denied substantial revenue from the levy.
“This would have raked millions of dollars into the country,” Dr Reddy said.
“The money will boost the country’s foreign reserve position as well as provide the relevant infrastructure.
“Later on in the process we realise that there were some operators under cutting that rate to get a larger share of the market of the incoming international voice traffic.”
Dr Reddy said the commission had been monitoring the market and meeting regularly with the telecommunications sector to change the strategy and come down hard on operators who violated the determination by the commission.
“We basically issued a directive to all operators, that they must open a separate bank account in Fiji where all the money received from inbound as well as out bound traffic is deposited in that account,” he said.
He said they will continue to monitor inbound international calls.
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