31 December 2021
Telkom Kenya said it welcomes the Communication Authority of Kenya’s review of the mobile termination rates (MTRs) and fixed termination rates (FTRs) from the previous Ksh0.99 to Ksh0.12.
The review is timely and a progressive step towards making voice services more affordable and accessible to more Kenyans, the company said.
Telkom added that voice, data, and financial services, are now a daily necessity. It said that globally, big and dominant players or incumbents in mobile telephony markets have had a pricing advantage due to the imbalance of connecting traffic between themselves and other network operators.
Higher MTRs and FTRs also have the potential to negatively impact the consumer if these larger operators are to price discriminate between on-net and off-net calls, Telkom says. This could lead to the creation of a “club effect” where customers of the larger operators are offered attractive price incentives (that are not affected by the MTRs and FTRs) to stay on the network.
Telkmon was previously a part of the Kenya Posts and Telecommunications Corporation (KPTC), which was the sole provider of both postal and telecommunication services.