Safaricom rivals to introduce Sh4 uniform rate
Safaricom’s rivals are seeking to
introduce a uniform minimum calling rate of Sh4 within their networks to cut losses caused by the price war that has gripped the mobile telephony market.
The Communication Commission of Kenya (CCK) said the three operators —
Telkom Kenya, Airtel and Essar — have approached it with the intention of introducing the floor rate and that they are currently working on a memorandum of understanding.
Besides increasing their revenues, the move will limit the price war among the three operators—who have seen their on net tariff drop to Sh2 per minute from Sh6 in 2010.
Orange currently charges Sh2 for calls within its network and Sh4 to its rivals. Both Airtel and Yu are charging Sh3 within and out of their network.
Safaricom charges Sh4 within its network and Sh5 to other networks—and it revised its charges by about 25 per cent in October after reporting a drop in profits for the six months to September. Safaricom maintains that a “realistic” termination rate should be the basis under which retail tariffs are set.
Uganda charges a termination rate of the equivalent of Sh4.50 per minute while Tanzania rates are at Sh5.75.
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