The Kenyan government plans to control the rates that Safaricom charges adversaries for ending calls on its organization to safeguard little telecommunications firms.
The new guidelines set by the state look to ban predominant telcos from creating gains from mobile termination rates (MTRs). In such a manner, Safaricom will currently charge expenses to cater just the expenses of interconnecting calls from its rivals.
The Kenya Information and Communication (Interconnection) Regulations 2022 set up for the Communications Authority of Kenya (CA) to handle Safaricom’s paces of interconnecting calls. Notwithstanding, this will possibly occur assuming Safaricom controls an excess of 25% more of versatile mobile service incomes.
Airtel and Telkom Kenya say that the ongoing rates are making it hard for them to contend with Safaricom.
“A dominant telecommunications licensee shall adopt the cost-based charges for interconnection as set out by the Authority from time to time,” the new regulation states.
“A dominant telecommunications service licensee shall set charges for interconnection based on an objective criterion, observe the principles of transparency and cost orientation,” it continues.
Telcos can still plead against MTR rates. Be that as it may, in the event that the greater telcos neglect to work out a fair agreement with the more modest ones, the CA will be compelled to set lower rates to permit the more modest telcos to rival the predominant ones.
Safaricom has outperformed the 25% portion of incomes as per the most recent industry information from the CA.
Telcos made Sh280.1 billion ($2.4-billion) in incomes from the sector, with Safaricom taking 82.4 percent of the voice income, 78.4 percent of the information, 83.8 percent of SMS, and 97 percent of other mobile services.
Airtel has also revealed that it pays Safaricom. It pays Safaricom Sh300 million ($2.6-million) every month or Sh3.6 billion ($31-million) per annum in MTRs, featuring the antagonistic impact of the great rates on their organizations.
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Source – Mfidie.com