NAIROBI: The Communications Commission of Kenya (CCK), Kenya's telecommunications regulator had earlier announced the cut on termination rates (amount of money an operator pays rivals if its subscribers call another network) from Ksh2.21 to Ksh1.44 a minute. This has stirred up a lot of issues, one of them being telecom operators like Bharti Airtel stating not to slice its tariffs in line with the planned reduction of mobile termination rates (MTR) in July. Shivan Bhargava, Managing Director at Bharti Airtel Kenya explained that they fully support CCK on that move but they are not in the position to further reduce their tariffs. “We are fully behind CCK move to continue with the MTR glide path but will not lower our tariffs at this moment as we will use the cost savings to upgrade our network.” Francis Wangusi, Acting Director, CCK suggested that MTR was the solution improvised to help boost competition among telecom companies by reducing rates. “We introduced the MTR to enhance competition. There are some operators who fear competition and do not want us to continue with the current glide path and that is the reason they are asking for another study.” Madhur Taneja, MD of Essar Kenya earlier supported the move by CCK and commented that they hope for a decrease in terminal rates that will translate to lower calling rates.
