Mobile operater Airtel Kenya will not be lowering the price after the Communications Commission of Kenya (CCK) cuts down the mobile termination rates (MTR) in July.

Mobile termination rates  is the amount of money an operator pays rivals if its subscribers call another network. The rates now stand at Sh2.21 and CCK plans to cut it down to Sh1.44 a minute in July. The move is supposed to encourage competition through price wars thereby lowering calling rates and encourage voice calls.

Airtel Kenya managing director Shivan Bhargava however says the company will not lower its calling rates as it plans to use the cost savings to upgrade its network. Airtel hopes to use the amounts saved from the difference it would have paid to its rivals to handle its operating costs.

CCK lowered the MTR from Sh4.42 in June 2009 to Sh2.21 in July 2010 in e a period that sparked great price wars with Airtel and Orange mobile lowering their prices in a bid to grow their market share. This saw Safaricom, the largest mobile phone operater in the country make unprecedented profit drops.