According to a report posted on The Star in Kenya, the Communications Commission of Kenya (CCK) may initiated a new cost study on the mobile market in order to decide whether or not to pursue cuts on Mobile Termination Rates (MTR) – or the rate that mobile phone operators charge one another for connection calls outside their networks.
Results may usher in a new model to replace the existing glide path says the report.
In July the regulatory body is said to have implemented a 20% cut on the rate, which is reported to have been on “an agreed decline”.
CCK Director General Francis Wangusi is quoted as saying, “We could do another study to find out if this cost model matches with the macro economic situation. This could result in adopting another model to replace the glide path.”
The CCK commissioned the Kenya Institute for Public Policy to perform a cost study in order to ascertain whether there was any foundation to opposition from some operators to the cuts.
Safaricom and Telkom have both reportedly claimed reduction does not match the reality of operation costs.
Research suggests that the issue continues to impact mobile services across many African countries, with the likes of Morocco calling for up to 70% reduction and Nigeria consistently reducing rates.