Other Factors Considered
Network Externalities
The Commission notes that in the study, no surcharge was
applied to account for the network externality. This is mainly
because of the lack of an accepted method for evaluating it with
any certainty, and mainly because of the lack of a practical
mechanism to ensure that any such surcharge would be used to
support the acquisition and retention of marginal subscribers.
Definition of Active Mobile Subscribers
The Commission notes the market dynamics and the indication
in the report that there is increasing competition evidenced by
new products and services. The Commission notes that despite
the impressive growth, the penetration rate is still low.
The Commission directs that mobile operators shall now report
active subscribers, defined as subscribers who have used a
revenue generating service within the preceding 90-day period.
5.

THE DETERMINATION
The Commission hereby determines the Interconnection rates to be
applied among the fixed and mobile telecommunication operators in
the Republic of Kenya.
The appropriate cost-based interconnection rates shall be as per
table below:

5

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