The Commission conducted a Network Cost Study on retail and wholesale prices in the Telecommunications market in 2006/07. The overall objective of the study was to determine, through review of the available institutional, regulatory and financial information and through a costing exercise, the appropriate costs and prices of various telecommunications services. It covered mobile and fixed telecommunications services in the country and the interconnection envisaged therein.

To achieve this, the study developed three models; the market models, cost models and price models. The results of the study are meant to provide the necessary regulatory tools in support of a competitive telecommunications environment that can ensure increased investment, returns and access to services in the long run.

One of the short-term regulatory requirements recommended to realign call termination was for the Commission to issue a Determination on Interconnection rates. Consequently, the Commission issued a Determination No.1 of 2007 on Cost based Interconnection Rates for Fixed and Mobile Telecommunication Networks in the Republic of Kenya (hereafter referred to as the Determination) to allow for the implementation of a cost-based pricing structure in Kenya.

Interconnection rates ruled in the determination

The Interconnection Determination became effective on the 1st day of March 2007 and is binding to all the fixed and mobile telecommunications network operators operating in the Republic of Kenya. The Determination superseded all the previous Rulings made by the Communications Commission of Kenya on mobile and fixed interconnection rates. The appropriate cost-based interconnection rates determined are as shown in Table 1. (See document below)

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	Review of Implementation of the Interconnection Determination No.1 of 2007 (PDF: 145KB)