The current regime of interconnection rate regulation was implemented through the Commission’s Determination No. 1 of 2007 issued on 22nd February 2007 that provided a three year glide path. Since then, the communications market has witnessed further market developments that, inter alia, include entry by two new operators, introduction of a Unified Licensing Framework (ULF), the landing of three undersea cables and rollout of a terrestrial cable network; and tremendous growth in both subscriber numbers as well as call (and data) volumes. In the light of these developments, the Commission decided to undertake a detailed review of the rates set in its 2007 determination. 2. OBJECTIVES OF THE REVIEW The primary objective of the Review of the Network Cost Study was to develop a new competitive interconnection rate framework that took cognizance of the new developments in the communications market including the introduction of the ULF, licensing of two additional mobile service providers and the landing of three fibre optic cables as stated herein above. The Commission, through consultations with the main telecommunications operators specifically developed and updated the cost, market and pricing models, and generated a new interconnection framework in a converged market covering mobile and fixed telecommunications services in the country and the interconnection envisaged therein. In the light of these developments, the Commission decided to undertake a detailed review of the rates set in its 2007 determination. Page 2 of 13