Kenyans Celebrate As Ezra Chiloba Announces Cheaper Call Rates.

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Kenyans to enjoy cheaper calls as the regulator lower call rates starting January 1st, 2022. The announcement was made by the Communications Authority (CAK) Director-General Ezra Chiloba.

A source who spoke to has revealed that call rates are expected to drop by about 87 percent.

 The Communications Authority of Kenya (CAK) has set the mobile termination rate (MTR) and fixed termination rates (FTR) at a uniform Ksh0.12.

 The current rates were fixed in 2015.

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{CA’s Statement: Director-General Ezra Chiloba: Photo Courtesy}

 Note: MTR and FTR are the rates mobile operators charge to allow customers to communicate across their networks.

CA Director General Ezra Chiloba said, “The revised interconnection is projected to have a positive outcome for both consumers and operators. At the retail level, consumers will now enjoy access to a variety of services across networks and at wholesale level, operators will have more price flexibility when developing innovative and affordable products. “

Both FTR and MTR are currently fixed at sh0. 99 for all telcos in Kenya.

It is a win for Airtel and a blow to Safaricom.

Ezra Chiloba
{Communications Authority Director- General Ezra Chiloba: Photo Courtesy}

 According to Analysts, the new rates, if implemented as stated by the Communications Authority, will benefit both Airtel and Telkom Kenya and the consumers.

 What will this mean to Safaricom?

 Although Safaricom’s revenue is expected to fall, the review will not affect its earnings due to its high subscriber numbers, which currently stand at over 64.5 percent.

 In October, Airtel Kenya had petitioned the regulator to review the fees, claiming that the current rates have only favoured the Giant Telco Safaricom.

This has come as a surprise to many Kenyans as CAK has in the past defended Safaricom against claims that the telco had abused its dominance in the telecommunications sector.

There has been a continuous drop in the rates from a high of Sh4.42 in 2011 to Sh0.99 in 2015.

 Kenyans will now enjoy lower rates as it’s been the experience in countries like the United Kingdom, France, and Germany.

In recent years, most European countries have seen an increase in subscriber numbers due to low calling rates, meaning they have maintained a downward review on their MTRs rates.

With the appointment of Ezra Chiloba as CA Director-General, things have been moving at a faster rate.

 In July 2021, the authority announced that it was working on reviewing the MTR to match the technological shifts that have since made mobile telephony more efficient.

 Interestingly, Safaricom had urged her competitors to work harder instead of crying for CA to review the rates.

{Telco Giants: Photo Courtesy}

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{CS Joe Mucheru EGH: Photo Courtesy}

 We will keep you up to date with the latest news from the telecommunications industry and the regulatory, CA Director General Ezra Chiloba.

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