CCK rejects MTR allegations

GOVERNMENT

-
Image: Francis Wangusi. By BiztechAfrica
Francis Wangusi

Kenya’s regulator has rejected allegations that business and political interests have impacted a decision on mobile termination rates.

The Communications Commission of Kenya’s Director General, Francis Wangusi, said in a statement: “Commentaries in some sections of the media appearing to suggest that the CCK Board has been unable to make a decision on the way forward on the implementation of the glide path on the Mobile Termination Rates (MTRs). The said reports further suggest that the CCK is hostage and beholden to certain political and business interests, thus casting aspersions on the ability of the Commission to effectively regulate the fast-growing ICT sector.  The reports have elicited disquiet in the local ICT market, and therefore merit a response.”

Wangusi gave the assurance that a decision on the MTRs would be made soon, and that it would be “fair and in the wider interest of consumers and the mobile telecoms industry.”
He said the Commission was only awaiting the completion of a study on the impact of the glide path on the competition in the sector and the wider economy.

CCK began regulating interconnection fees in 1999 following the entry of two additional mobile operators in the market. In March 2010 CCK undertook a detailed review of the Network Cost Study, aiming to develop a new interconnection framework that promotes competition, operational efficiency of the firms and further growth of the sector through continued investments and innovations. Subsequently, CCK issued the Determination No.2 on Interconnection Rates for Fixed and Mobile Telecommunications Networks; Infrastructure Sharing and Co-location; and Broadband Interconnection Services on 16th August 2010. The Determination was to be effective from 1st July 2010 to 30th June 2013.

The issuance of the Determination in August 2010 saw retail price competition in the mobile voice services intensify with actual off-net prices fall from a high of Ksh12 per minute to between Ksh5 and Ksh3 per minute. On-net prices also fell from Ksh8 to Ksh3 per minute.

Despite these positive signals in the market, some sections of the mobile telecoms industry and some government agencies raised concerns that the ensuing retail price competition arising from the reduction in mobile termination (wholesale) prices was detrimental to the continued growth of the sector and the economy.

In a meeting held on 20th May 2011, the CCK Board considered these issues and decided to freeze the mobile and fixed termination rate for year 2010/2011 for a further one year as the Commission evaluated the veracity of the issues raised by stakeholders. Consequently, on June 8th last year, the Commission issued Addendum No.2 to the Determination No.2 of 2010 revising the mobile and fixed termination rates and the attendant glide path.

CCK said: “To further address the issues raised, the Commission has since contracted the services of a consultant to undertake a study on the impact of the ensuing competition in the retail mobile voice market. The consultant has submitted an inception report and is due to present the interim report to the CCK Management and Board soon.”



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE GOVERNMENT NEWS

Malawi launches Internet Governance Forum

Dr Edmund Katiti The Malawi Government and Nepad have launched the Malawi Internet Governance Forum in an effort to bring a semblance of order to the internet services in the country. Read More

Environmentalists welcome improved technology

Participants in a recent Monitoring For Environment and Security in Africa (MESA) conference in Botswana were upbeat about the new technologies that MESA is harnessing.  Read More

Kaberuka addresses Africa’s infrastructure gap at OECD

African Development Bank President Donald Kaberuka made a strong case for the importance of tackling private investment impediments in the African infrastructure agenda during the joint AfDB, Organisation for Economic Co-operation and Development (OECD) and International Growth Center (IGC) event in Paris. Read More

Kenya inaugurates USAC

Kenya’s new Universal Service Advisory Council (USAC) has been inaugurated by the Cabinet Secretary, Information, Communications and Technology.  Read More

Education Minister: ICT vital in schools

Botswana’s Acting Minister of Education and Skills Development, Mokgweetsi Masisi, has called for an increased uptake of ICTs in all schools in the country.  Read More

Innovation Hub introduces new offices

The Botswana Innovation Hub (BIH) has opened two new offices to services its wider clientele base.  Read More

Orange, DRC govt sign fibre optic deal

PTTIC DRC Orange and the government of the Democratic Republic of Congo have signed a deal which will see Orange take control of the country’s fibre optic platform.  Read More

NCC presents telecoms governance code

The Nigerian Communications Commission (NCC) has launched a Corporate Governance Code for the telecommunications industry. Read More

CBN starts bank verification number initiative

The Central Bank of Nigeria has commenced the first phase of the enrolment of bank customers under its Bank Verification Number initiative. Read More

Botswana, Germany, France in ICT/cultural exchange

The Botswana College of Open and Distance Learning (BOCODOL) is in the second year of an educational exchange that involves students from France and Germany.  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Widening ICT skills gap: Cause for concernWidening ICT skills gap: Cause for concern

Nigeria's FDI gains could be eroded by the widening gap in indigenous skilled ICT manpower, writes Kokumo Goodie.

IN DEPTH

Kenya rolls out e-extension to improve agricultureKenya rolls out e-extension to improve agriculture

In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.

COMPANY NEWS

VMware reports second quarter 2014 results

VMware, the global leader in virtualization and cloud infrastructure, today announced financial results for the second quarter of 2014.

New Sage ERP X3 version puts business information at your fingertips

Sage ERP Africa has announced the availability of Sage ERP X3 version 7, the latest version of its global business management solution for midsized companies. 

How the cloud can power entrepreneurship and urbanisation in Africa

Cloud computing is not only fundamentally changing the way business operates, it is also driving a new wave of job creation opportunities, says SAP Africa.