Telkom Kenya hails new CCK rates

August 18, 2010

, NAIROBI, Kenya Aug 18 – Telkom Kenya welcomed the Communications Commission of Kenya’s (CCK) decision to review interconnection rates downwards for mobile operators.
A recent report by UK-based consultants, Analysys Mason – appointed by CCK to study calling rates – prescribed the lowering of the fee from the current Sh4.42 to Sh2.21. The new rates take effect from September.
Deputy Chief Executive Officer Jane Karuku said Telkom Kenya was currently reviewing the recommended termination rates in view of its customer proposition and long term business model.
“Our key focus remains to continually improve the quality of our network with a view to ensuring that our customers continue to enjoy value for money from Orange without compromising on quality of service,” Ms Karuku said.
She said the operator’s business model was anchored on its long term understanding of the Kenyan market dynamics against a benchmark of global best practices.
Telkom Kenya has however expresed some concerns about the viability of the rates, and would be making the necessary deliberations before announcing new rates.
She said CCK is expected to play a more vigilant role to ensure customer protection, fair competition among players and long-term viability of the industry.

“The market penetration in this country is still very low despite the robust network capacity that Kenya currently enjoys. CCK must hold players accountable to providing accessible services to a wider reach of Kenyans through sustainable pricing while at the same time safeguarding against long term destruction of the market,” she said.

Zain Kenya was the first operator to take advantage of the revised interconnection rates, on Wednesday, with the launch of a Sh3 flat call rate from Zain to all other networks.

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