The communications regulator’s board is split over plans to lower mobile termination rates from KES 2.21 per minute to KES 1.44 per minute.

The termination rate is the amount of money an operator pays another operator if its subscribers call another network.

Mr. Francis Wangusi, the acting CCK director has argued that lower termination rates had positive impacts to the larger economy since it would spark off healthy competition from the mobile operators that would subsequently see lower off-net calling rates.

Information permanent secretary Bitange Ndemo opposes the this move arguing that a fresh study needs to be conducted to determine the rates, arguing that Mr. Wagusi is going against President Mwai Kibaki's directive.

The President, in June 2011, froze the move to lower termination rates following intense lobbying from Safaricom and Orange.

Safaricom argues that the current termination rates are based on an outdated model and asked CCK to carry out a fresh study that would reflect the cost of doing business in Kenya’s voice market in line with Uganda and Tanzania.

Airtel and Essar, on the other hand, are pushing for lower termination rates, arguing that they are paying Safaricom a large amount of their revenue since it hands the bulk of the cross network calls due to its dominance in the mobile market.

Courtesy of Business Daily