MTR tussle to take longer to resolve

May 16, 2012
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The CCK Headquarters are in Westlands, Nairobi
NAIROBI, Kenya, May 16 – The Mobile Termination Rates (MTRs) tussle will take three months longer to resolve, after the Communication Commissions of Kenya (CCK) pushed forward the release of a study that was to determine viability of lowering the rates.

The study which is being conducted by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) was expected to be released on July 1 this year, but has now been extended to October 1.

Speaking during a media open day forum, Acting Director General Francis Wangusi said the delay comes after KIPPRA asked for more time to carry out a comprehensive study.

“The company that we awarded to carry out the tender has asked for 12 weeks, and because 12 weeks has surpassed July, we will be able to make that determination in October,” Wangusi said.

At the same time CCK Competition, Tariffs and Market Analysis Director, Matano Ndaro said the study may not change much of the already given facts about the telecoms sectors, adding that the whole situation about the terminations rates is being politicised.

He added that if the rates remain high, the small mobile operators will continue being oppressed by the dominant operators, as the latters’ subscribers fear to call subscribers from the smaller operators due to higher calling charges.

“The only disadvantage is to the bigger operator, because lower MTRs make the services of those smaller operators more competitive, and they take away market share from the bigger operator,” Ndaro explained.

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