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Mobile & Wireless

CCK backs away from plan for retail mobile call price floor

Wednesday 25 April 2012 | 09:13 CET | News
The Communication Commission of Kenya (CCK) has changed its position on a proposal by Airtel Kenya, Essar's Yu and Orange Kenya to set a minimum calling rate of KES 4 within their networks, terming it illegal. In a statement, the CCK said while it had held discussions about wholesale interconnection rates with some licensees, no request had been made officially regarding the intention to fix the retail mobile voice tariff. It said retail price fixing, as practised in collusive oligopoly markets, is an anti-competitive business practice that is contrary to the prevailing competition law and policy. It would therefore be in breach of Kenyan law so such no approval can be granted. The CCK's reversal comes barely a week after the Competition Authority said it was investigating the price floor plan and termed the action illegal.

Categories: Mobile & Wireless
Companies: Airtel / CCK / Orange Kenya / Safaricom / Yu
Countries: Kenya
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