Why lower interoperator tariffs might not yield cheaper calls

Communications Authority of Kenya

The Communications Authority of Kenya (CA) headquarters in Nairobi.

Photo credit: File | Nation Media Group

When the communications industry regulator announced a cut on the rate mobile phone operators charge each other for calls made across networks, public expectations hit fever-pitch.

The stakes were high. Kenyan consumers braced for a fall in cross-network charges in the wake of a price war triggered by lowered mobile termination rates (MTRs).

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Note: The results are not exact but very close to the actual.