Abacus Wealth Management

Off-Net Calling Rates to Drop

The Communication Commission of Kenya (CCK) is waiting for its board to lower the termination rate from the current KES 2.21 to KES 1.44 per minute. The new rates which are to take effect in July 2012 and will see off-net calling rates reduce.

The “termination rate” is the amount of money a mobile service provider pays its competitors if its subscribers call another network.

The new termination rates were to take effect in June 2010, but President Kibaki froze it for one year following intense lobbying from Safaricom and Orange.

CCK hopes that a decrease in mobile termination rate will encourage competition which will translate into lower calling rates.

The current off-net rates are:

Safaricom – KES 5.00

Airtel – KES 3.00

Orange – KES 3.00

Yu-Mobile – KES 4.00

Exit mobile version