Conatel cuts interconnection rates by 15%

Paraguayan telecoms regulator Conatel will force mobile operators to cut interconnection costs by 15% from January 1, as they have failed to reach an agreement amongst themselves, local newspaper ABC reported. Conatel cut the interconnection cost by US$0.03 to US$0.18 a minute. The interconnection cost from fixed to mobile networks was maintained at US$0.14 a minute. "The licenses of all the operators have recently been renewed and they have to agree on the interconnection cost between their networks," Conatel's new president, Omar Ramos, was quoted as saying. "Because they have not arrived at an agreement, then, according to Law 642, Conatel must establish the interconnection costs, for which we have hired a consultant from the International Telecommunications Union, to orientate us on determining the value of interconnection," Ramos said. Paraguay's five mobile operators are Millicom subsidiary Telecel, Telecom Argentina subsidiary Nucleo, Hutchison Paraguay, KDDI subsidiary Hola Paraguay and CPC, a division of local group Rieder. On Monday, Ramos is expected to give an evaluation of the progress made in the telecoms sector during the first 100 days of the administration of President Nicanor Duarte Frutos, and lay out the immediate plan of action.