Safaricom Opposes CA Directive On Lower Call Rates

Safaricom has opposed the Communications Authority of Kenya’s review of mobile termination rates and fixed termination rates that would lead to affordability in internetwork calls.

The Communications Authority (CA) capped Mobile Termination Rates (MTRs) that local mobile phone operators charge each other for interconnecting customers by 0.87 shillings from 0.99 to 0.12 shillings.

The review by the market regulator would see Kenyans enjoy lower call rates across networks as compared to what is at the moment.

“The review was founded on the recognition that higher MTRs mean higher calling rates for consumers,” Communications Authority director-general Ezra Chiloba said through a press statement.

Both Telkom Kenya and Airtel Kenya have welcomed the directive. The directive is set to be effective January 2022. But Safaricom has filed a case with the Communications and Multi-media Appeals Tribunal opposing the directive.

According to Safaricom, the regulator should have adopted a cost modeling approach as opposed to international benchmarking to determine termination rates. The telco wants the matter certified as urgent because it will affect the company.

“The applicant stands to suffer substantial and irreparable loss unless this application is heard, and a stay of the decision is granted as a matter of urgency,” the suit by Safaricom says.

Consequently, Safaricom wants the tribunal to issue an injunction restraining CA from implementing the cuts until the appeal is heard and determined. This might mean that Kenyans will have to wait for long before the implementation.

Safaricom argues that the regulator ignored public participation, adding that it was not given an opportunity to be heard and make representations before the final decision was arrived at.

“The respondent (CA) adopted a procedure that was unreasonable and procedurally unfair in arriving at the impugned decision contrary to Article 47 of the Constitution as well as section 4 of the Fair Administrative Action Act, 2015,” Safaricom says in its appeal.