Benin ICT Sector Performance Review 2009/2010 Pricing of Access to ICT Services One of the essential reasons for the implementation of a regulatory institution for the telecommunications and ICT sectors is to ensure the provision of quality service to users at socially maintainable and relatively stable rates over time. In fact, the practice by operators of high access cost and usage rates could be at the root of the poor development of the sector and could constitute major obstacles in the appropriation process of telecommunications and ICT by households as well as companies in Benin. The objective of this section is to analyse the composition and evolution of different telecommunication and ICT service rates. Service Rates on the Fixed Line Network of Bénin Télécom SA As regards the demand for telephone services on the fixed landline network, households and companies are faced with two types of rates: • the network connection rate, which is the price all households or companies have to pay in order to belong to the club of fixed landline holders ; and • usage rates paid for the duration of the different communications initiated. On the Bénin-Télécom SA fixed landline network, the network connection rate is subdivided into two parts: the network connection fee and the monthly subscription charge. In Benin, for nearly 10 years, the network connection rate has not changed. It is 96,492 FCFA including taxes for residential subscribers (households and individuals) and 175,642 FCFA including taxes for business subscriptions (companies, administration). The monthly subscription charge, which represents the maintenance costs of the line by Bénin-Télécom SA, amount to 2,700 FCFA including taxes. Table 10: Fixed-line network access rates. Description Connection fee (FCFA incl. taxes) Monthly subscription charge (FCFA incl taxes) 2007 2008 2009 96.492 / 175.642 96.492 / 175.642 96.492 / 175.642 2 700 2 700 2 700 Source: ATRPT (2009). On the wireless fixed-line network (AMPS and CDMA) of Bénin-Télécom SA, users are also expected to pay connection fees. For residential use of wireless fixed line networks, connection fees are set at 33,000 FCFA including taxes, compared to 40,000 FCFA including taxes for business users. Table 11: Evolution of call rates on the fixed-line network. 2007 2008 2009 National Communications Local communications/mn 20 20 20 Interurban communications/mn 60 60 60 Communication to mobiles/mn 120 120 120 International Communications (Peak hours/mn) UEMOA countries in FCFA excl taxes/mn 240 240 240 Other African countries 240 240 240 France, Italy 240 240 50/240 240/1200 240/1200 240/1200 240 240 50/240 240/1200 240/1200 240/1200 Other European countries United States/Canada Other countries Source: ATRPT (2010). 13 One of the essential reasons for the implementation of a regulatory institution for the telecommunications and ICT sectors is to ensure the provision of quality service to users at socially maintainable and relatively stable rates over time.