•t is expected that operators will remain incentivized to invest in quality and innnovation as consumers enjoy affordable communication products and services.
The Communications Authority has announced new Mobile and Fixed Termination Rates for local telcos at Sh0.58.
This is after a consultative process between the CA and Mobile Network Operators.
"We are happy to announce that the Communication Authority of Kenya ( the Authority) and Mobile Network Operators (MNOs) have through a consultative process mutually agreed on an interim Mobile Termination Rate ( MTR) and Fixed Termination Rate of sh0.58,"
According to a joint press statement, the interim rate will apply for the next one year, effective from August 1, 2022 then after, the authority will issue new rates based on the outcome of the ongoing Network Cost Study.
MTRs are the charges levied by a mobile service provider on other telecommunications service providers for terminating calls on its network.
On December 23, 2021 the Communications Authority of Kenya (CA) announced it will cut the MTR per minute to Sh0.12 from Sh0.99 at the start of this year, but the decision was temporarily suspended after Safaricom #ticker:SCOM filed an objection at the Communications and Multimedia Appeals Tribunal.
Safaricom which earns the most from MTR due to its large voice market share of 68.9 percent challenged the move before the Multimedia Appeals Tribunal.
The regulator told the tribunal that upon requisite public participation, it retains the discretion to ultimately determines the methodology to adopt in reviewing MTRs and Fixed Termination Rates.
“This is consistent with the provisions of section 5A of the KICA that the CA shall be independent and free of control by government, political or commercial interests in the exercise of its powers, performance of its powers and in the performance of its functions," lawyer Wambua Kilonzo told the tribunal.
"Following this development, the Authority engaged with MNOs. With the aim of reaching a compromise that would quickly unlock the benefits of lower MTR and FTR to the industry, and most importantly, the consumers," reads the statement.
With the adoption of the revised interim MTR and FTR of Sh0.58, it is expected that operators will remain incentivized to invest in quality and innnovation as consumers enjoy affordable communication products and services.
"We all remain committed to fostering a thriving communications sector that plays a key role in the socio-economic development of the country," reads the statement