Information industry regulator Communications Commission of Kenya could conduct a new study to determine the most appropriate rate for mobile phone call termination. Mobile Termination Rate (MTR) is the amount of money a mobile operator pays a rival company when its subscribers call the rival’s network.
The CCK board will be meeting today to determine whether or not the proposed new rate of Ksh. 1.60 will be implemented beginning July. The regulator had announced earlier that it planned to lower mobile termination rates (MTR) in July from the current Sh2.21 to Sh1.44 a minute. This did not go down well with mobile operator Safaricom who complained that they would not recover their cost as 6 out of eight calls end up in their network.
The Ksh.1.60 rate was arrived at as a compromise fee because Safaricom was calling for a high fee while the CCK and the other three operators were keen on Sh1.44. Information Permanent Secretary Bitange Ndemo said a meeting with all the operators resolved that the mobile termination rates would be lowered to Sh1.60 beginning July and that CCK conducts a fresh study that will determine the rates to be applied in the next review period.
Wangusi says that the CCK the and operators agreed that should a new study be conducted putting a rate higher than the proposed Ksh. 1.60, the regulator will maintain the rate at Ksh. 1.60.