With the implementation of the next phase of the mobile termination rates glide path that started in 2010 around the corner, making a call across networks is set to be pocket friendly henceforth to all subscribers.
Communications Commission of Kenya will reduce the cost an operator pays to terminate a call on another network which will see the rate that mobile phone companies charge each other to terminate calls outside their individual networks drop from the current sh1.15 to 99 cents.
Tangaza Pesa, Zioncell and Equity Bank’s subsidiary Finserve recently awarded mobile virtual network operator licences will be the greatest beneficiaries of the move by the regulator since they will have a bigger margin, allowing them room to set low rates for voice services.
With big players in the industry charging a flat sh3 per minute for on-net calls and sh4 per minute across networks, Telkom Kenya sh2 per minute on-net and sh3 off-net, Tangaza has hinted charging sh2 per minute across networks and a possibility of charging 50 cents on SMS to lure customers which definately calls for competition.
The move is set to increase subscribers in the industry relating to the last reduction in July 2010 that saw voice tariffs fall from sh8 per minute to sh3 per minute adding over 9 million new subscribers.