Termination rates appeal thrown out by CCK

CCK rejects Safaricom and Telkom Kenya's appeals for higher termination charges
Kenya's CCK rejects Safaricom and Telkom Kenya's appeal against higher termination rates
Kenya's CCK rejects Safaricom and Telkom Kenya's appeal against higher termination rates

Share

Safaricom and Telkom Kenya’s appeals for higher termination charges have been rejected by the CCK. The termination charges are paid by operators to rivals when subscribers make calls across networks.

Francis Wangusi, the acting director-general of the CCK said that the commission won’t be negotiating the rates. “We are not going to negotiate with any operator to have the rates revised upwards or conduct another study. As a commission we want the rate to go as low as zero shillings so as to increase competition in the sector.”

Wangusi also said: “The interconnection rate does not affect what they charge their subscribers, they can raise the retail tariffs if they want but they fear a rebuttal from their subscribers who can opt for other affordable networks, to me they are simply looking for a reason to justify an increase.”

Nzioka Waita, corporate affairs director at Safaricom thinks that the CCK’s decision to implement a low MTR that doesn’t reflect market costs could cripple the industry. He said: “Artificially low termination rates do not allow operators to fully recover the cost of receiving and terminating calls received from other networks and this significantly impacts the network receiving the largest number of cross-network calls such as Safaricom.”
 

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story