Loading...

The Urgent Need to Overhaul Mobile Termination Rates in Kenya

29 Nov 2023

In recent times, concerns have been raised about the exorbitant calling rates in Kenya, prompting a closer examination of the Mobile Termination Rates (MTR) set by the Communication Authority. The prevailing rates, particularly the recent publication of Kes 0.41 effective March 2024, have sparked a heated debate about their fairness and the impact on consumers, as well as stifling competition within the telecommunications sector.

As per a study commissioned by the Communication Authority, the recommended MTR should be ZERO or at best Kes 0.06. This proposed adjustment, if implemented, would significantly reshape the telecommunications landscape in Kenya. It is argued that with MTR at Kes 0.06, both Airtel and Telkom will gain breathing room and foster healthy competition within the industry.

There are growing concerns about the anti-competition strategies employed by the dominant mobile telecom in Kenya. These tactics allegedly aim to stifle the growth and competitiveness of other players in the market. Regulatory measures must be taken to curb such practices and ensure a level playing field for all operators.

One of the major grievances against the recently published MTR of Kes 0.41 is the perceived lack of sufficient public participation in the decision-making process. Public participation is crucial for the development of fair and transparent regulations that take into account the interests of all stakeholders, including consumers and industry players.

When compared to international standards, the proposed MTR in Kenya appears unreasonably high. Countries such as Rwanda, Costa Rica, India, the United States, Canada, and Tanzania have either set their MTR at zero or significantly lower rates (e.g., Tanzania at 0.012). This raises questions about the justifiability of the Kes 0.41 rate and its potential negative implications for consumers and the industry at large.

Members of the Committee on Information, Communication, and Innovation (CII) in Kenya implore the Communication Authority to reconsider and withdraw the proposed MTR of Kes 0.41. The committee, along with concerned stakeholders, asserts that this rate is unacceptably high, lacks public participation, and is detrimental to the growth and competitiveness of the telecommunications sector in Kenya.

It is essential for regulatory bodies to prioritize the interests of consumers and the overall health of the telecommunications industry. The proposed adjustment of MTR in Kenya is viewed by many as a step in the wrong direction, hindering fair competition and potentially exploiting consumers. The Communication Authority must heed the call for a fair and transparent process that considers the recommendations of the industry experts and takes into account the experiences of other nations with successful telecom sectors. The urgency of this matter cannot be overstated, and prompt action is necessary to protect the rights of Kenyan consumers and ensure a vibrant and competitive telecommunications landscape in the country.