www.WirelessFederation.com/news: Digicel Fiji has inked an interconnection deal with Telecom Fiji, the fixed-line telco, allowing the Digicel subscribers to make calls to landlines at a lowered tariff. According to Dr Mahendra Reddy, the Chairman of the Commerce Commission, the government is now working on reviewing interconnection charges for other telecoms service providers in the country.
Digicel had launched its GSM network in September to break Vodafone’s monopoly in the Fiji mobile market.
Telecom Fiji (local and national (trunk) telephony services provider) is in an end user licence agreement with UshaComm under which the telco will use UshaComm’s state-of-the-art billing system Unicorn, as well as its convergent mediation system Pegasus and interconnect billing and reconciliation system UIBS. Telecom Fiji is anticipating that this upgradation will help them to improve their revenues.
Telecom Fiji has signed a USD7.6 million deal with Indian IT firm Tech Mahindra to replace its IT systems, billing systems and study the possibility of outsourcing its billing requirements to other telecom carriers. The 18-month contract is aimed at making the incumbent telco more flexible to take on competition in Fiji’s recently deregulated telecom market.
Telecom Fiji Ltd (TFL) posted net profits of USD24.6 million for its fiscal year ending 31 March 2007, up from USD19.6 million the previous year, but below the USD26.8 million profits it achieved in 2004. TFL, which is wholly owned by Amalgamated Telecom Holdings (ATH) in 2004, said profits from operations increased by 5% as sales turnover increased overall due to increased data revenue. In its company report TFL said it made gains from an approved increase in line rentals, and a diversification in its revenue away from a reliance on traditional fixed line call charges. Operating costs rose 2% due in part to increased staff costs.
In 2006 TFL embarked on a programme called 110/50 to arrest the decline in fixed line connections and stimulate traffic in the network. Under the plan, the operator hoped to boost the number of connections to 110,000 and increase network traffic by 50%. In practice, it came close to its goal, reporting 108,362 fixed lines in service at the end of the year.
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