Communications Commission of Kenya (CCK) has finally announced a cut in the Mobile Termination Rate (MTR) to KES 1.44 from the current KES 2.21, a move that has been long overdue. This is what will see you subscribe to lower calling tariffs as it is expected to bring about fair competition among mobile telephony operators in the country.
Experts in the industry have also predicted that the move will also see the quality of service provision improved, though it's also predicted that mobile consumers will have to wait for some time to feel this change.
[Read: Mobile Termination Rates & How They Affect You]
The new rate which mobile phone operators charge for interconnecting customers is backdated to July 1, 2012 and mobile operators are now expected to effect it immediately. CCK Director General Francis Wangusi told Capital Business that a study done by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) established that competition would not affect the stability of tax revenue, employment, inflation, investments, performance of the telecoms shares in the stock market, stability of the Nairobi Securities Exchange, business process outsourcing and access and affordability of communications services.
MTR is the amount of money an operator, say Safaricom pays another operator like Airtel when its subscribers call the other network. Therefore, having low termination rates will encourage competition amongst the operators.
Mobile telephone operators will therefore now be required to refund each other the extra money they charged since July 1 this year while under the current rate of KES 2.21.
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