The government of Uganda has taken the final step that will enable her join the East African one-area network currently being implemented by Kenya and Rwanda since September 1, 2014.
This follows a letter that Uganda’s Minister of State for Finance (privatization), Aston Kajara wrote to the Minister of Information and Communication Technologies, John Nasasira.
The letter entitled “Proposal to Remove Excise Duty on International Incoming Calls originating and Terminating within the Northern Corridor Region”, referred to the directive of the July 3, 2014 Summit of the Northern Corridor Integration in Kigali, Rwanda to the partner states to implement the one-area network by September 1.
This requires that excise duty be removed on all inbound international incoming calls to Uganda from Tanzania, Kenya, Rwanda and Burundi with effect from Nov.01, 2014.
“The legal modalities for implementing this decision will be worked out soon in consultation with the ministry of justice and constitutional affairs,” the letter added.
ONA is an arrangement between the EAC partner States – Uganda, Tanzania, Kenya, Rwanda and Burundi – aimed at making mobile calls from and to within the region charged at a lower uniform rate of Kshs 8.7 (UShs 253) per minute. The aim is to make international and roaming tariffs cheaper in a bid to deepen social-economic integration in the region.
Some subscribers have been paying almost Shs 2, 000 to make a call to another country in the EAC due to the high roaming charges – but with the ONA arrangement, callers should expect friendlier charges.
The coming on stream of ONA gives the partner States a needed shot in the arm as they struggle to practically implement the already signed protocols including the Common Market and the Customs Union. They are currently on a ten-year roadmap intended to implement the Monetary Union before thinking of the final stage – Political Federation.
Under the ONA arrangement, it was planned that charges for making or receiving calls in other countries in East Africa [including interconnection charges]would be cut by more than 60%. But it would vary from one operator to another.
Kenya and Rwanda have received plaudits for being the first to implement the ONA leaving Uganda, Tanzania and Burundi in their wake. South Sudan is also part of the arrangement but for various legal reasons it did not make it like Kenya and Rwanda did.
The expectation is that by end of December 2014 all partner States should have implemented the the ONA arrangement.
Earlier in 2007, telecom operators in the EAC had a similar initiative called ‘home-and-away’ which ran until 2010 in which customers were not charged for receiving calls while travelling in EAC countries.
However, due to pressure for more internally generated revenue, regulators in each country started imposing excise duty on incoming and outgoing calls for people travelling in the EAC. This was temporarily abandoned.
Isaac Kalembe, The media relations specialist at Uganda Communications Commission (UCC), Isaac Kalembe said two weeks ago that Uganda had been expected to launch the ONA on Oct. 8 when the Standard Guage Railway project was launched in Kampala.
But while telecom companies in Uganda have no choice but to implement the ONA, it could take another month before actual implementation because they need time to negotiate with their counterparts in the region so as to fully implement it.
“We are looking at the end of December as our implementation deadline,” Anthony Katamba, MTN’s general manager for corporate services, said
Their Kenyan and Rwandan counterparts didn’t have such excuses. Press reports recently said Airtel Kenya had reduced call rates by 60% and offered free incoming calls for postpaid and prepaid customers roaming in Rwanda.