CA, operators agree on interim termination rates following challenge

9 Aug 2022

The Communications Authority of Kenya (CA) has announced that it has agreed on an interim fixed and mobile termination rate (FTR and MTR) with telecoms operators following a consultative process. As such, a rate of KES0.58 (USD0.005) per minute will apply from 1 August 2022 for a period of twelve months, after which the CA will issue new rates based on the outcome of an ongoing network cost study.

As previously reported by CommsUpdate, the CA issued a determination on interconnection rates in December 2021 which would reduce the FTR and MTR from KES0.99 to KES0.12 per minute effective 1 January 2022. Shortly after this, however, Safaricom petitioned the Communications and Multimedia Appeals Tribunal to block the introduction of new rates, saying the move would negatively impact on its revenue and profitability, and arguing that the CA should have adopted a cost modelling approach to determine the termination rates, rather than an international benchmarking methodology. Following Safaricom’s application, the tribunal suspended the CA’s decision and the regulator engaged with telecoms operators to reach a compromise on the rates.

The CA says that with the adoption of the interim termination rate, ‘it is expected that operators will remain incentivised to invest in quality and innovation as consumers enjoy affordable communication products and services.’

Kenya, Communications Authority of Kenya (CA), Safaricom