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
N780b fine: MTN must pay before out-of-court settlementMTN Nigeria must pay substantial part of the N780billion fine imposed on it for SIM registration infraction before contemplating out-of-court settlement, ComTech Minister, Adebayo Shittu has insisted. Read More
Kenya, Uganda collaborate on electronic cargo trackingThe Kenya Revenue Authority (KRA) and the Uganda Revenue Authority have signed an MOU on the establishment of an Electronic Cargo Tracking System (ECTS). Read More
Cashless Africa 'achievable through partnerships'The Alliance for Financial Inclusion (AFI) has renewed its partnership with MasterCard at the African Mobile Phone Financial Services Policy Initiative (AMPI) meeting. Read More
ICT CS launches free Internet for Schools programme in Machakos CountyKenya’s ICT Cabinet Secretary Joe Mucheru has lauded Airtel for its commitment to support e-learning in Schools by providing free internet connections to schools in Kenya through the company’s Free Internet for Schools programme. Read More
BITC launches online trade portalAs part of efforts to improve trade facilitation, the Botswana government, through the Botswana Investment and Trade Centre (BITC), has launched a web-based platform designed to help improve the ease of doing business. Read More
Ghana MPs struggle with digitised chamberGhana’s parliament almost came to a standstill earlier this week, when members of parliament battled to make use of new digitised desks installed in the chamber. Read More
Over 10,000 applications for BTCL sharesBatswana have come out in record numbers to submit their Offers for BTCL shares, with around 1,000 applications per day at Barclays Bank branches across Botswana. Read More
KRA announces key Customs reformsThe Kenya Revenue Authority (KRA) has announced a variety of reform measures geared at enhancing national security and efficiency in Customs management. Read More
N780b fine: MTN opts for out-of-court-settlement with NCCMTN Nigeria has asked for an out-of-court settlement in the suit it filed against the Nigeria Communications Commission (NCC). Read More
FEATURED STORYViber Spreads Good Vibes in Africa with the introduction of public chats
Viber, one of the leading messaging and calling apps with more than 664 million unique users worldwide, has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East.
BEST READ NEWS
IN DEPTHPoised for greater heights – Roshi Motman, AfricaCom CEO of the Year Winner
Roshi Motman is not your average CEO. Since taking up the reins as the first female CEO of Tigo Ghana in 2014, she has led the Tigo brand through a remarkable transformation.