After telecoms and the Communications Authority of Kenya (CA) reached an agreement, Kenyans may soon benefit from lower calling charges.
Telcos and the CA came to an out-of-court agreement that will result in reduced voice calls thanks to a 41% reduction in mobile termination charges.
One of the telecoms had filed an appeal, asking the CA to clarify its order that they lower mobile termination rates.
These fees, which are 87 percent, are imposed by a mobile service provider on other providers for ending calls in its network.
On Friday, August 5, the Communications and Multimedia Appeals Tribunal issued a decision that indicated the prices should be reduced.
“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 judgment read.
The tribunal further ruled that CA should conduct a network study on the industry to determine new call rates
“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,” the Tribunal added.
The pricing of both on-net and off-net calls may be heavily impacted by call termination rates, which establish the cap on what mobile operators can charge users for voice calls.
The new prices were set to take effect on January 1, 2022, but the telcos claimed that a proper process was not followed when determining the rates
The CA has suggested lowering Mobile Termination Rates (MTR) from 0.99 to 0.12 shillings, claiming that doing so would benefit customers and guarantee network operators’ ability to remain in business.
Separately, a report by the CA published on June 23 on Thursday revealed that voice calls among Kenyans had decreased.