This archive report was first published on 23 December 2021.
December 23, 2021 - The COVID-19 pandemic has accelerated the global shift towards remote work, online communications, and virtual transactions, making voice, data, and financial services a daily necessity.
As a result, the Communications Authority's review of Mobile Termination Rates (MTRs) and Fixed Termination Rates (FTRs) from KSh. 0.99 to KSh. 0.12 is a timely and progressive step towards making voice services more affordable and accessible to Kenyans.
According to Telkom Kenya, the review aims to address the imbalance of connecting traffic between dominant players and other network operators, which has led to higher MTRs and FTRs.
This could lead to the creation of a 'club effect' where customers of larger operators are offered attractive price incentives to stay on the network, stifling competition and denying customers of choice.
However, Telkom Kenya remains committed to developing new and competitively priced products and solutions, such as Madaraka Life, to address customer dynamics and increase access to technology services.
Despite the progress made, the affordability of handsets remains a challenge to getting more Kenyans connected, and further intervention from regulators and sector stakeholders is needed to expedite the implementation of policy frameworks to lower this barrier.
