The Communications Commission of Kenya has cut the rate mobile phone operators charge each other for interconnecting customers by 34 per cent. File
The Communications Commission of Kenya has cut the rate mobile phone operators charge each other for interconnecting customers by 34 per cent.
The communication regulator lowered the Mobile Termination Rate of (MTR) to Sh1.44 from the current Sh2.21 and backdated the lower July—offering relief to firms like YU and Airtel that have been pushing for lower rates. Safaricom has been against a drop in MTR.
Mr Francis Wangusi, the director-general of the CCK, on Monday said the rate will be backdated to July—meaning the operators will either have to revise their invoices or offer credit notes to the sum already settled.
“The board approved the new rates today after going through the KIPPRA report that shows the low MTR did not have a negative impact on tax collections, employment in the sector and on the Nairobi Stock Exchange,” said Mr Wangusi.
“The rates are expected to increase competition and encourage the providers to offer better services.”
The rate fell from Sh4.42 in June 2009 to Sh2.21 in July 2010, and was to drop to Sh1.44 last June before President Kibaki froze it for a year following intense lobbying by Safaricom and Orange.
