The Communication Commission of Kenya is expected to announce the new call rates, a move that will result in the high interconnection rates charged by mobile operators coming down, industry experts say.
This follows a recent report by UK-based consultants, Analysys Mason, who were appointed by the Communications Commission of Kenya to study call rates in the country last month.
Speaking during the signing of a partnership agreement between Yu – a Kenyan mobile network operator established in December 2008 – and DStv, Essar Telecom Kenya country manager, Atul Chaturvedi, said that the current termination charges not only make calls to other networks expensive, but also lock mobile phone subscribers in networks with cheaper inter-network charges, which derails growth.
The partnership will enable YU subscribers of certain handsets access to television programmes on their mobile phones.
“We are happy with the recommendations (of the commission) and hope the benefits that will be passed on to operators will eventually enable us to reduce calling charges,” Chaturvedi said.
Chief executive officer of Safaricom, Michael Joseph, condemned the ongoing call rate price war among mobile operators in Kenya, describing it as “unfashionable” in the current Kenyan market.
Formed in 1997, Safaricom is the leading mobile network operator in Kenya.
“We cannot sell minutes at a loss,” Joseph said. “Let them reduce rates, but it will only be for a short time. A business must make returns.”
He added that what the industry needs is effective competition through product innovation and quality service.
With 78% cent of the 20 million subscribers in Kenya, Safaricom has been accused by rivals of perpetuating the “club effect” by making it cheap to call within its network, but prohibitively expensive across other networks.
BRIAN ADERO in Nairobi, Kenya
