CCK rejects MTR allegations
GOVERNMENT| Oct. 12, 2012, 7:02 a.m.
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.”
MORE GOVERNMENT NEWS
Macra kicks off ICT access surveyThe Malawi Communication Regulatory Authority has started a national survey on ICT access and usage in Malawi. Read More
NCC gives operators to Jan 2015 to design consumer compensationThe Nigerian Communications Commission (NCC) has set up a committee to look into how consumers could be compensated directly by service providers for the depletion of their air time due to poor quality of services (QoS). Read More
NCA launches Type Approval Portal in GhanaGhana's National Communication Authority has launched an Online Portal for Type Approval at the plush La Palm Beach Hotel in Accra. Read More
BIH gauges Open Data readiness in BotswanaOpen Data could make a significant contribution to Botswana’s economic goals, and help re-assert Botswana’s traditional democratic credentials, a study has found. Read More
Ghana moots lifting of smartphone import taxThe Government of Ghana is set to consider the lifting of import tax duties on smart phones. Read More
Broadband ‘boosts growth’Every economy today requires broadband for growth and prosperity, says Joseph Tiampati, Principal Secretary in the Ministry of Information, Communications and Technology. Read More
CAK: all systems go for Universal Service FundKenya's long-awaited Universal Service Fund has finally become a reality and it aims to bridge the digital divide. Read More
Khama spells out ICT roadmap in SONAIn his first National Assembly address after his reelection, Botswana President Ian Khama told the nation that the implementation of the National Research, Science, Technology and Innovation policy (RSTI) has started. Read More
Ghana to launch first phase of National Fibre Network soonThe Government of Ghana is expected to officially commission the completion of work on the fibre optic network connecting the eastern corridor linking Ho in the Volta region and Bawku in the Northern Region of the country by the end of December this year. Read More
FEATURED STORYGSMA: half a billion mobile subscribers in SSA by 2020
The number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020, says a new GSMA report.
BEST READ NEWS
IN DEPTHAfrica lags on digital migration
Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.
COMPANY NEWSLeading through volatility in Africa
For the businesses that are prepared to face the storm and manage the volatility afflicting the continent, there are still huge rewards to be had from doing business ...