Why It Will Be Cheaper To Make Phone Calls

One of the telcos had moved to seek a direction with regards to the CA's directive to lower mobile termination rates.

Marvin Chege Marvin Chege
Aug 6, 2022 - 12:01 Updated: Aug 6, 2022 - 12:01
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Why It Will Be Cheaper To Make Phone Calls
President Uhuru Kenyatta making a phone call. /NAIROBI NEWS

The Communications Authority of Kenya (CA) and telcos struck an agreement that could see Kenyan mobile subscribers enjoy cheaper calling rates.

The duo had reached an out-of-court settlement that will allow for lower prices in voice calls after mobile termination rates were cut down to 41 per cent.

One of the telcos had moved to seek a direction with regards to the CA's directive to lower mobile termination rates.

CA Director General, Ezra Chiloba. /THE STAR

A mobile termination rate is necessary for a voice operator to connect a caller with the recipient of a call on a different network. Wholesale termination rates are the rates which operators charge each other for the termination of voice calls on their networks.

The mobile termination rates were urged to be lowered in line with a judgement from the Communications and Multimedia Appeals Tribunal delivered on Friday, August 5.

“The current mobile termination rate (MTR) and fixed termination rate (FTR) be revised from Sh0.99 to an interim rate of Sh0.58 (Revised Interim Rate).

“The revised interim rate will apply for a period of 12 months from August 1, 2022. Upon conclusion of the Network Cost Study, the authority will without undue delay implement a new MTR and FTR," read parts of the judgement.

The CA had proposed to cut the Mobile Termination Rates (MTR) to 0.12 shillings from 0.99 shillings to give consumers cheaper options to make phone calls and ensure that network providers continue to rake in profits from the payments Kenyans make for phone calls.

The authority had revealed in a report on Thursday, June 23 that Kenyans were making fewer phone calls.

CA Director General, Ezra Chiloba, noted that the traffic for domestic mobile voice calls dipped from January to March, the same time excise duty charges went up from 15 per cent to 20 per cent.

A woman using her phone. /FILE

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