Indian mobile operator Airtel Kenya is seeking a dialogue with President Mwai Kibaki and Prime Minister Raila Odinga to review a presidential freeze on the implementation of lower mobile termination rates (MTR).

MTR, the amount of money mobile firms pay each other for calls that terminate in a rival’s network, currently stands at 2.21 shillings per minute in Kenya. Kenya's four mobile operators, Safaricom, Airtel, Essar Telecom (YU) and Telkom Kenya held consultations on May 29, and agreed a new MTR rate of Sh1.60, which was to be implemented last July.

However, President Kibaki put a stop to this when he issued a directive, for a second time during his term in office, maintaining that the MTR should remain unchanged until an all-inclusive study of costs is undertaken and forwarded to his office for his consideration.

But in a letter penned late last month, Airtel managing director Shivan Bhargava says the move to delay implementation of new MTR has resulted into significant losses for the company.

“We would like to state that as significant investors in this country, we have made all our decision to enter this market and investment substantially on the basis of the conducive, investment climate and liberalised telecommunication sector that pertained two years ago and this included, the Government promise that the Interconnection glide path would be fully implemented,” states Airtel.

“I am directed, therefore, to inform you that until an all-inclusive study of costs and other relevant issues is undertaken and forwarded to this office for His Excellency’s consideration, the status quo should remain,” read part of a letter signed by Nick Wanjohi, the President’s private secretary.

Airtel has raised concerns on government policy regarding the MTR.

“The change in government policy, before full implementation, has resulted in significant losses to our business as our business is now forced to meet costs that were not anticipated.” said Airtel.

Airtel's concerns shows the frustration its Indian counterpart YU has also faced in the market due to government’s partisan policies.

Last year, the two Indian operators supported the review of MTR while market leader Safaricom, in which the Kenyan government holds major shareholding, opposed the move.