as possible and the desire to maintain stability in the business plans of the
operators by according them a reasonable amount of time to adjust their
plans.

5.4.

Submission of Final Report

Upon consideration of all the comments submitted by the industry stakeholders,
the Final Report of the study was submitted to Communications Commission of
Kenya on 16th July 2010.

6.

CONSIDERATION OF THE FINDINGS OF THE NETWORK COST
REVIEW

After a thorough and exhaustive review of the findings of the Network Cost Study, the
Commission notes the following important issues arising from the study:

a)

Mandate: That the Review of the Network Cost Study was undertaken within the
mandate of the Commission as stipulated in the Act and Regulations;

b)

Stakeholder Involvement: That the review was undertaken in a consultative and
transparent manner and all stakeholders were, to the extent possible, adequately
involved in the process;

c)

Response to Comments raised by Stakeholders: That all the comments raised by
the stakeholders were considered and adequately addressed during the review
exercise;

d)

Costing Methodology: That the pure LRIC methodology is the most efficient
method for setting termination rates as it sets termination rates close to the
marginal cost of providing termination services to third parties;
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