High cost of calls reversing regional integration, says PS

Communications Commission of Kenya (CCK) director general Francis Wangusi. Photo/FILE 

By MUTHOKI MUMO

 

In Summary

• On the Safaricom network, it is cheaper to call the US and India at Sh5 per minute than Uganda or Rwanda at Sh30

High roaming and international calling charges have been cited as some of the major barriers to trade in East Africa.

During the opening of the East African Communications Organisations (EACO) congress in Nairobi on Monday, acting permanent secretary in the Ministry of Information Communications and Technology Bruce Madete urged regional stakeholders to find a solution to the high tariffs that East Africans have to pay when calling across borders.

“These high roaming charges negate the very essence of integration, and act as a disincentive to communication and trade within the region,” Mr Bruce Madete said.

Roaming and international calling rates within East Africa community remain high despite the region’s pursuit of economic and political integration.

Cailing United Sates

For instance, on the Safaricom network it is cheaper to call the United States and India at Sh5 per minute than Uganda or Rwanda at Sh30 per minute.

This situation is replicated in the Telkom Kenya network where calls to the United Kingdom can cost as little as Sh3 per minute while subscribers calling Uganda will be charged at least Sh18 per minute.

“A fragmented policy space” has been blamed for the situation. Last year in July, the Rwanda Utilities Regulation Agency, the country’s telecommunication regulator, imposed a Sh18.7 fee per minute on any operator terminating calls within Rwanda.

The fee, imposed in a bid to curb network traffic fraud, saw Safaricom increase its roaming and international calling rates in the region.

Safaricom chief executive Bob Collymore, in an interview with the Nation yesterday, said the rates remain high primarily because of unfair taxation policies adopted by the member states.

“The roaming network is extremely expensive in the region but that’s because of the taxes imposed on the service by the regulators. In order to encourage trade in the East African region, there is need for the governments and regulators to look into possible ways of making this service more affordable to customers,” Mr Collymore said

Communications Commission of Kenya called for the harmonisation of the taxation policies in the region with a view to cut down the cost of communication across the member states.

Taxation measures

“There is a lot of disparity across the East African Community in terms of taxation measures and calling charges. We need to harmonise these regulations,” said Communications director general, Mr Francis Wangusi.

The EACO brings together private sector players and regulators in the information communications technology sector from all five partner states.

Stakeholders meeting in Nairobi for the EACO congress are expected to address these issues over the next four days.

However, resolutions adopted by the EACO may remain nothing more than ink and paper as the Community is yet to grant the body enforceable authority.

Mr Wangusi says that EACO will this year be integrated into the processes of the EAC and this will give its decisions more weight.