Members of Parliament (MPs) from the Communications, Information, and Innovation Committee are urging the Communications Authority of Kenya (CA) to reassess its position on mobile calling rates. The push comes in response to CA’s initial proposal to decrease the mobile termination rate (MTR) to Ksh0.41 per minute from the current Ksh0.58, set to take effect on March 1st, 2024, sparking strong opposition from lawmakers.
MPs are championing the adoption of CA’s own study, recommending a more significant cut in the MTR to Ksh0.06 per minute from the existing levels. Despite this recommendation, CA has already imposed a cap on MTRs and Fixed Termination Rates (FTRs) at Ksh0.41 per minute, effective March 1st, 2024. The existing SMS termination rate remains unchanged at Kh0.05 per SMS.
The intricate landscape of MTRs and FTRs involves the costs operators levy on each other to facilitate customer communication across networks. Currently, all telecommunications service providers uniformly maintain an MTR and FTR of Ksh0.58 per minute.
The parliamentary call for reconsideration stems from revelations that CA overlooked a report proposing a significantly lower rate. MPs, including Nandi Hills MP Bernard Kitur, Keiyo South MP Gideon Kimaiyo, and Irene Mayaka (Nominated), assert that CA proceeded to implement new MTRs and FTRs at Ksh0.41 per minute, contrary to their own report recommending Ksh0.06.
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MTR, signifying the cost per minute for cross-network communication between operators, often favors dominant players. Led by Kitur, MPs question the swift implementation of new rates by CA, deeming it suspicious and calling for a pause to allow for more comprehensive consultation.
The revised MTRs and FTRs specifically impact local voice traffic within Kenya. While CA states that the proposed tariffs respond to economic conditions, ICT market dynamics, and the delicate balance between investment promotion and consumer protection, MPs argue that the Authority overlooked its own study.
Legislators expressed their concerns after CA presented a study by Tilil Technologies and Acacia Economics for national roaming telecommunications to the committee on Information and Innovation (CII), chaired by John Kiarie. This study suggests reducing rates to 0.06, aligning with the global trend toward zero termination rates.
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MPs are now demanding the appearance of CA Acting Director-General Christopher Wambua to explain the methodology behind the published rates, citing a lack of public participation in determining the new tariffs. A significant reduction in MTRs and FTRs is expected to provide consumers with access to more affordable services across networks, granting operators flexibility in devising cost-effective products.
