Kenya termination rate dropped
GOVERNMENT
By BiztechAfrica – May 30, 2012, 2:54 p.m.
Following much debate, Kenya has cut the mobile termination rate to Ksh1.60 – slightly higher than the planned Ksh1.44.
The MTR has been on a glide path downward in recent years, and was set to drop to Ksh1.44 last year. However, lobbying by Safaricom and Orange resulted in last year’s price drop being frozen. The next drop, scheduled for July this year, was expected to take the interconnect rate to Ksh1.44.
However, Safaricom called for a higher rate, both Safaricom and Orange urged a new study into the rates, Yu called for asymmetric interconnect rates and Airtel called for the reduction glide path to continue.
Debate over the issue erupted at the highest levels, resulting in a meeting to settle the issue between Kenya’s Ministry of Information, the Communications Commission of Kenya (CCK) and the mobile operators.
Information Permanent Secretary Bitange Ndemo said a new CCK study would be carried out to ascertain what rates should be charged in the next review period.
Safaricom CEO Bob Collymore said he was not aware that the CCK Board had approved the new termination rate.
Airtel has been quick to respond to the development, informing consumers “Our calling rates remain the same.”