Kenya's Safaricom says that it has received an international gateway licence, which it expects will result in a substantial fall in prices of international calls by the mobile service provider. Kenya's telecommunications industry regulator Communications Commission of Kenya (CCK) announced the long-awaited move that is expected to stimulate growth in the fast expanding telecommunications industry.
Safaricom Chief Executive officer Michael Joseph hailed the move by the government saying the new measure is bound to bring down the prices of most international calls by up to 50 percent of the current rates.
"This is a landmark move in Kenya's telecommunications industry and we expect that Kenyans will now enjoy better prices of international calls. This adds an additional boost to the growth in mobile telecommunications which has developed tremendously in the last few years," said Joseph.
He said the changes were welcome in an industry that has contributed heavily to the growth of the economy offering substantial employment to Kenyans both directly and indirectly.
What this means is that Safaricom's international calls, within one month, will no longer have to be routed through Telkom Kenya's International Gateway making them cheaper than before owing to Safaricom's direct connectivity to the outside world through its own international gateway.
Already, Safaricom has put up the necessary infrastructure in form of a satellite earth station awaiting the granting of the licence as part of its massive network expansion programme expected to cost over Shs 17 billion in this financial year.
"We have the necessary infrastructure in place and we expect to that Kenyans who make international calls will be enjoying new rates within a month," said Joseph.
He said this would enable Safaricom to carry international traffic for other licensed operators as well in a competitive environment.This includes Internet Service providers and corporate organisations, who require leased circuits to communicate internationally.
Earlier this year President Mwai Kibaki indicated that Safaricom would be granted the licence after intense lobbying from the mobile service provider.
According to The Mobile World database, Safaricom is the market leader in Kenya, with just under 4 million customers. The market penetration is around 17%."
Posted to the site on 3rd July 2006
Posted to: www.cellular-news.com/story/18080.php