Kenyans will from March next year enjoy lower calling rates following the slashing of Mobile Termination Rates (MTRs) and Fixed Termination Rates (FTRs) by the Communications Authority.
MTRs and FTRs are the costs that operators charge each other to allow customers to communicate across networks.
"In the latest review, the Authority has capped Mobile Termination Rates and fixed termination rates at Sh0.41 per minute with effect from March 1, 2024. The current termination rate of Sh0.05 per SMS remains unchanged," CA said in a statement Friday evening.
Currently, telecommunication service providers are implementing an MTR and FTR of Sh0.58 per minute.
CA said the new MTRs and FTRs shall apply from March 2024 for a period of two years and will be applicable only to local voice tariffs, 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 promo of investment and the protection of consumers Lower MTRs and FTRs mean lower calling rates for consumers," the authority said.
According to the authority, the decision will have positive outcomes for both the consumers and operators.
Consumers will enjoy affordable services across networks while operators will have more price flexibility in developing more affordable products, CA said.
"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 February 1, 2024."