CCK to review model used in Mobile Termination Rate cuts

Francis Wangusi
Image: BusinessDailyAfrica

Following recent cuts in Mobile Termination Rates (MTR) and the complaints by several mobile operators opposed to the move, Communications Commission of Kenya (CCK) is now considering reviewing the model used in determining MTR.

This was revealed by CCK director General Francis Wangusi, who said the move is aimed at replacing the current model that has been in place since 2009.

“We could do another study to find out if this cost model matches with the macro economic situation. This could result in adopting another model to replace the glide path,” said Wangusi.

This means that Kenyans could have to wait longer to enjoy further MTR cuts, as the regulator reviews the model.

Just few weeks ago, CCK announced a cut in the MTR, which saw it drop to KShs1.15 from the previous Kshs.1.44 which had been implemented late last year.

This however did not go down well with Safaricom and Telcom, who have always said that the cuts do not reflect their operation costs. The smaller players in the industry, Airtel and YU have however always welcomed the cuts, saying that this levels the ground giving them a chance to also lower their call rates and attract more customers.

CCK did not however disclose how long this review will take, a process that could take six months or more, based on the previous timeframes taken to announce new MTR cuts.