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SMS cost set to go down in East African Community (EAC)

SMS

Cost of sending a text message within East Africa is expected to drastically fall as the regional governments extend the push to lower cost of communication beyond voice.

The reduction in charges are expected to promote cross-border trade and overall economic growth in the region.

Kenya, Uganda, Rwanda and South Sudan have agreed to cut tariffs on SMS across the region. This is part of the ‘One Network Area’ initiative adopted last year to help drive down cost of communication.

The new rates will be launched in October when the regional heads of state meet in Nairobi for the 11th Northern Corridor Integration Project Summit. Uganda’s President Yoweri Museveni, Rwanda’s President Paul Kagame and South Sudan President Salvar Kiir will be hosted by President Uhuru Kenyatta.

Partner states are negotiating for SMS in the region to cost Sh1 across all countries, says Mr Joseph Nyaga, who is in charge of the Northern Corridor Integration Project Authority in Kenya.

However subscribers in Uganda might have to wait longer since phone operators have not implemented the proposal to remove taxes on SMS and data roaming across the three countries. Communications regulator in South Sudan also does not have sufficient constitutional grounding to handle changes in SMS and data.

The two countries will have two months to align their telecom systems to the One Network Area requirements on data and SMS.

Meanwhile, Rwanda and Kenya have concluded consultations with mobile phone operators and are awaiting South Sudan and Uganda to come on board.

Currently, Kenya’s largest telco Safaricom charges Sh1 to send a text message within the network in Kenya, while international SMS rates remain Sh10. When talks on One Network Area on SMS are finalised, subscribers will pay a shilling to send an SMS to all countries falling within the agreement.

During the Northern Corridor Infrastructure Summit in Kampala held on June 5, the four partner States agreed that the wholesale price for SMS within the region would be below $0.03 cents inclusive of all applicable charges. In the agreement, they said the retail price would not exceed $0.06 cents per SMS.

The retail rate is the cost incurred in sending SMS within the country while the wholesale rate is the agreed interconnection rate between networks.
Presidents Kenyatta, Museveni, Kagame and Kiir adopted the agreements and have set a deadline for their execution.

Telecommunication firms; MTN, Safaricom, Tigo and Airtel were earlier on against the move saying it would hugely cut down their revenue. At the March 6, Northern Corridor Integration Projects Summit in Kigali, Rwanda, they had proposed huge charges.

In their view, the cost of SMS while roaming for instance in Rwanda and Uganda should cost $0.12 cents in bundles, and $0.22 out of bundle. In Kenya, sending an SMS should cost $0.11 in bundles and $0.20 in Rwanda.

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Posted by on September 1, 2015 in Business News

 

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World Bank approves East Africa electricity highway project‏

 

 

The World Bank board of executive directors’ approval of the Eastern Electricity Highway Project marks the first  phase of a US$1.3 billion power integration program in east Africa.

The  project will connect electrical grids between Ethiopia and Kenya, create power-sharing between the two countries, reduce energy costs, and pave  the way for more dynamic regional cooperation between the countries of  east Africa, the World Bank says. The World Bank financing of  US$243 million for Ethiopia and US$441 million for Kenya will come from  the International Development Association, the bank’s fund for the  world’s poorest countries.

“The Eastern Electricity Highway Project is a unique opportunity to unlock East Africa’s vast energy potential, including hydropower, while safeguarding the environment,”- Paivi Koljonen    

Source: The World Bank Site

The bank says Ethiopia will benefit through  the sale of energy to Kenya, which faces severe power shortage. Both  countries would benefit from additional jobs created by construction and installation activities.

Makhtar Diop, World Bank vice president for the Africa region, says  the landmark transformational project will change the fundamentals of  the power sector in east Africa and expand access and lower the cost of  electricity supply to homes and businesses across Kenya.

The approval of the east Africa electricity highway project is  anchored in a World Bank regional strategy for Africa which aims at  promoting greater investment, boosting economic growth and reducing  poverty.

In 2011, World Bank helped to provide electricity to additional 1.4 million people in African countries.

 
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Posted by on July 23, 2012 in International News

 

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