Consumers to Enjoy Lower Calling Rates Following Drop in Interconnection Rates

Consumers will enjoy lower calling rates following the ICT regulator’s review of Mobile Termination Rates (MTRs) and Fixed Termination Rates (FTRs).

In the latest review, the Authority has capped the MTRs and FTRs at KES. 0.41 per minute with effect from 1st March 2024. The current SMS termination rate of 0.05 per SMS remains unchanged.

The MTRs and FTRs are the costs that operators charge each other to allow customers to communicate across networks. Currently, all the telecommunications service providers have been implementing an MTR and FTR of KES 0.58 per minute.

The new MTRs and FTRs shall apply to only local voice traffic, which means calls originating and terminating within Kenya.

The new rate is informed by the prevailing economic environment, ICT market dynamics and the need to strike a balance between the promotion of investment and the protection of consumers. Lower MTRs and FTRs mean lower calling rates for consumers.

This decision will have positive outcomes for both the consumers and operators. Consumers will now enjoy access to a variety of affordable services across networks while operators will have more price flexibility in developing more affordable products.

The revised MTRs and FTRs shall apply for a period of two years from March next year. Ahead of the new rates taking effect, all operators are required to vary their Interconnection Agreements in line with the Determination and file their Deeds of Variation with the Authority latest 1st February 2024.

The full Determination No. 4 of 2023 is available on the Authority’s website at https://www.ca.go.ke/determinations