Lower roaming charges ‘will spur growth’ in EA
A man using a mobile phone. Communication regulators in East Africa have commissioned a study to provide a framework to cut roaming charges in the region and spur growth. PHOTO | FILE
What you need to know:
- Mobile operators, however, blame the rates on taxation of the recently introduced international traffic, adding that harmonisation should be hastened.
- Uganda levies Sh7, Tanzania Sh10, Rwanda Sh9 and Burundi Sh13. Calls made by a Kenyan when roaming or calling directly from the country are subjected to the taxes.
Communication regulators in East Africa have commissioned a study to provide a framework to cut roaming charges in the region and spur growth.
The East African Communication Organisation (EACO), the body mandated to carry out the study, said the details would be released in September after which groundwork on reduction of roaming charges would be implemented. The study will help develop and recommend a clear cost-based roaming framework.
Kenya, through the Communications Commission of Kenya (CCK), chairs EACO and will ensure that regulators from Kenya, Tanzania, Rwanda, and Burundi are involved in the study.
“EACO has secured funds for international roaming charges in the East African region,” stated an advert seeking a lead consultant for the study.
It stated that the consultant must have a comprehensive understanding of roaming charges, infrastructure connectivity, and the telecommunication market in the East African region. Experience and familiarity with the roaming values and chain pricing is also required.
According to the CCK director, Mr Francis Wangusi, roaming charges have a direct impact on regional trade and free movement of people. “To this end, there have been regional efforts, at ministerial level, to develop a fair and equitable charging framework to facilitate regional roaming. The ministers responsible for ICT from Kenya, Rwanda, Uganda, and South Sudan have had several meetings to discuss the high cost of international mobile voice, messaging, and data roaming. These will help hasten regional integration,” said Mr Wangusi.
The developments in lowering roaming charges come amid complaints by traders that roaming in the region is more expensive than in Asia and Europe, hence hurting business.
“The high tariffs are caused partly by taxes and are a great trade barrier, especially as the region pursues economic and political integration,” said ICT Cabinet secretary Fred Matiang’i.
Mobile operators, however, blame the rates on taxation of the recently introduced international traffic, adding that harmonisation should be hastened.
“The rates must be temporarily reduced before considering a cross-border study, which may take long as the gains of removal of taxes are immediately transferred to customers,” said Safaricom CEO Bob Collymore.
The East African countries, apart from Kenya, have introduced specific taxes on international calls within the region, which have had a direct adverse impact on roaming and calling rates.
Uganda levies Sh7, Tanzania Sh10, Rwanda Sh9 and Burundi Sh13. Calls made by a Kenyan when roaming or calling directly from the country are subjected to the taxes.
Among solutions under consideration by EACO are defining wholesale and retail price caps for roaming based on best prices, harmonising SIM registration in the region to enable sharing of subscribers’ data, leveraging on ICT to improve service delivery and enhancing e-commerce.
The East African Chamber of Commerce, Industry and Agriculture supports the plan.
“It is high time the talks were concluded, further substantial progress towards an East Africa single market for telecoms is essential for strategic interests and economic progress,” said the organisation’s regional coordinator and chief executive, Mr Charles Kahuthu.
