This might interest some of you---------- Forwarded message ----------
From: Alwala, Rachel
Date: Thu, Jan 20, 2011 at 7:23 PM
Subject: CCK PRESS RELEASE ON AIRTEL'S PROMOTIONAL TARIFF - FEELANGA FREE
Cc: CPR team <CPRteam@cck.go.ke>
PRESS RELEASE
![cid:image001.jpg@01CBAE80.383363D0]()
20th January 2011
STATEMENT FROM CCK ON AIRTEL’S PROMOTIONAL TARIFF – FEELANGA FREE
The Communications Commission of Kenya issued an Interconnection Determination for termination rates of both voice and Short Message Services (SMS), on 16th July 2010 and 1st January 2011, respectively, following the telecommunication network cost study undertaken by Analysys Mason on behalf of the Commission.
The Commission expected that the reduction of Interconnection termination rates would influence reduction in retail tariffs and consequently generate more competition in the market. Subsequently there has been considerable reduction of retail tariffs both for voice services and SMS, which has resulted in a significant increase in minutes of use on the GSM networks in the country. This is an indication of positive market response to the changes in prices.
Airtel Networks Kenya Limited, recently launched an offer in the market under the name, feelanga free, costing the on-net calls at a retail price of Ksh. 1 per minute from 6am to 6pm. Based on the information availed at the launch, the public has perceived it as a permanent tariff. Further, the Commission has received a complaint filed by one of the GSM Network operators that it is not clear whether feelanga free is a promotion or permanent tariff. Upon enquiry by the Commission, Airtel Networks Kenya Limited has since clarified that feelanga free is a promotional tariff, w.e.f, 13th January 2011. The Commission has further instructed Airtel Networks Kenya Limited, to comply with the promotional guidelines as provided in the Kenya Information and Communications (Tariff) Regulation, 2010.
The Commission also wishes to emphasize that network operators are free to adopt business models that suit them. Matters of cost structures and profitability are therefore left for the determination of individual operators. The mandate of the Commission is purely guided by the Sector Legislation and Regulations in force.
Issued by:
Charles. J. K. Njoroge
Director General
Communications Commission of Kenya
PO Box 14448
Nairobi 00800
Tel: 4242000
Fax: 4451866
Email: info@cck.go.ke
I wonder what the promotional guidelines say. I don't have time to read the documents that spells those. Anyone?
That sentence says it all though. If the business model suits Airtel, I wonder why anyone outside the Airtel conglomerate is complaining.
Isn't it the same "pilipili usioila..."?
I still feel the PSs statements were biased towards a certain player, and the issue of the constitution was the smoke screen used!