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Mobile interconnection boosts fixed operator revenues in Kenya

JOHANNESBURG, South Africa—An increased volume in calls being made by KenCell and Safaricom’s mobile subscribers over the fixed-line network of Telkom Kenya has caused the company’s revenues to increase by 17 percent.

Telkom Kenya’s annual revenue grew from 20 billion shillings (US$256 million) in 2000 to 24 billion shillings (US$307.2 million) in 2001.

Currently, the estimated 700,000 mobile subscribers in the country pay 18 shillings (US$0.23) per minute for a connection to the fixed network. However, the Communications Commission of Kenya is expected to arbitrate a new round of discussions on a revised interconnection agreement between the mobile and fixed operators.

The interconnection fees are regarded by many as the source of the country’s high mobile tariffs.

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