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Kenyan Networks Face Investigation Over Claims of Collusion in Setting Prices

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Kenya's smaller mobile networks are facing an investigation by the country's Competition Authority after they adopted a uniform minimum calling rate within their networks. The Authority termed the action as uncompetitive.

The telecoms regulator however confirmed that it had been approached by the three networks - Telkom Kenya, Airtel and Essar - on the matter and it is working on an MoU to approve the proposals. The aim is reportedly to stem losses that the networks have suffered due to an ongoing price war between them.

"The three operators have approached us and we cannot say no to their proposal. We will only come in if we notice that they are colluding to exploit the end users," a regulatory spokesman said.

The Competition Authority however looks at the issue as anti-competitive as it reduces differentiation between the smaller networks services.

The country's dominant network, Safaricom is not involved in the pact.

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Tags: telkom kenya  airtel  essar  Kenya