Air wars: Orange jumps in

Written by K24 Business Desk
Wednesday, 25 August 2010 12:55

The price war in Kenya's mobile communication sector has yet again taken on a new dimension, after Telkom Kenya launched the new lowest on-net calling rate, for both its post- and pre-paid customers.


The new tariff will see Orange subscribers paying 2 shillings for on-net calls, and 4 shillings on calls made to other networks.


The permanent offer will also see Orange customers spend 1 shilling and two shillings on SMS within and across networks respectively.


The new tariff also comes with an additional benefit of free calls for its prepaid customers, from 10 am to 5pm, for every 100 shillings top up per month, and across all Orange networks such as Orange Mobile, Orange Wireless and Telkom fixed.


Telkom Kenya CEO Michael Ghossein says the new tariff, which takes effect at midnight tonight, has been developed to ensure that their customers consistently enjoy value for money, through the provision of reliable services.


Mr Ghossein however exuded dissatisfaction about how the industry's regulator, the CCK, has implemented the new telecommunication regulations, which require service providers to lower interconnections rates, saying that their concerns were not addressed. He further reiterated that the sudden moves being made by service providers may not relate well with future market dynamics in the mobile telephone industry.


This latest move by Telkom Kenya is clear-cut proof of just how the battle for numbers in Kenya's mobile telephone industry is set to intensify by the day.


Zain Kenya sparked the onslaught by launching a 3 shillings flat call rate, and Essar Telkom followed suit with a 50 % reduction on its cross-network calls to 3 shillings. Just yesterday, market leader Safaricom effected a 3 shillings cross-network calling rate applicable to its post-paid customers, and as of today, Telkom Kenya has joined the band wagon.