Information permanent secretary Bitange Ndemo has called for a fresh study into the rates of the termination fees which CCK announced last week. The Communications Commission of Kenya last week announced it would slash the termination  fees from the current Sh2.21 to Sh1.44 per minute 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, having dropped from Sh4.42 in June 2009 to Sh2.21 in July 2010. The move is supposed to encourage competition through price wars thereby lowering calling rates and encourage voice calls.

Ndemo who is also a director at CCK said that the regulators decision to implement the new charges without consulting with industry layers was going against the president's directive. The rates were supposed to drop to Shs1.44 last June but the president put it on hold after Safaricom and Orange campaigned against the move.

“CCK cannot go ahead and implement the termination rates without conducting a fresh study where all operators are involved, I will not pass a policy matter where some parties are not consulted,” Dr Ndemo said in an interview with Business Daily.

Mobile operator Safaricom is against the drop of MTR which could see competition rise and another price war that could see it lose revenue. CCK has said it will not conduct a new study but is just waiting upon the boards' approval to make implement the new rates come July.

Read: Why Safaricom is against Lower Termination Rates and Airtel to Maintain Tariffs After CCK Slashes Rates