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Kenya reaches consensus on call termination rates

Kenya , 10 Aug 2022

Kenya’s Communication Authority (CA) has reduced the call termination rates between telecommunications companies in a bid to make cross-mobile calling more affordable.

According to the CA, agreement was reached on amended calling rates after its proposal to reduce Mobile Termination (MTR) and Fixed Termination Rate (FTR) from Kshs 0.99 to Kshs 0.12, was challenged at the Communications and Multimedia Appeals Tribunal.

The agreed MTR and FTR now stands at Kshs 0.58.

A statement released by the CA reads: “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. The interim MTR and FTR will apply for 12 months with effect from August 1st 2022, after which the authority shall issue new rates based on the outcome of the ongoing Network Cost Study.”

The CA believes telecommunications services providers have sufficient incentive to offer users competitive services.

In the Network Cost Study, the CA is considering practices in other countries to ensure a competitive MTR and FTR.

The CA stated: “In order to identify relevant benchmark countries, the Authority will take into account structural as well as conjectural differences between countries. Benchmark countries will be selected on the basis of similarities with Kenya with respect to the applicability of relevant best practice, economic variables, demographics, stage of development of telecommunications market and geography.”

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