BY WINFRED KAGWE

THE Competition Author-ity is expected to give the way forward on how much mobile network operators should charge for allowing calls from each other’s net-works.

The authority has now been asked to determine the Mobile Termination Rates after the Communication Commission of Kenya board failed to reach an agree-ment.

The MTR, which is the rate callers’ operator pays the receiving one for connecting a call, was expected to be cut down in July, but the regula-tor has not given the order yet with varied stands taken by the operators.

The authority’s decision will eventually determine how much consumers pay for cross network calls. Cur-rently yuMobile and Airtel charge Sh3, Telkom Sh4 while Safaricom charges Sh5 per minute.

“The MTR issue has been forwarded to the Competi-tion Authority,” said Infor-mation and Communica-tion PS Bitange Ndemo on Friday.

The recently operation-alised competition body is mandated to regulate mar-ket conduct by ensuring that prices are determined by forces of supply and demand and that some companies do not abuse their positions for example by barring new en-trants or pricing unfairly.

Currently the MTR is at Sh2.21 and was expected to be reduced to Sh1.44 at the beginning of July 2011 but the glide plan was put on hold for a year following in-tense lobbying by Safaricom

and Telkom Kenya that the low call rates were eating up to their revenues. However, Essar and Airtel wanted the rate to be reduced further so that they continue with their ‘lowest call rates’ strategy they use to capture the mass market.

In May, the operators, CCK and the ministry met and reached a compromise Sh1.60 rate. However it lat-er emerged that not all op-erators were agreeable to the rate delaying the CCK board decision.

“We are making progress. I’m sure this will be resolved

soon,” said the PS. Mean-while, the ministry has or-dered all operators to make sure all mobile internet users have an IP address to curb spread of anonymous, hate-ful messages during this elec-tion period.

An IP (Internet Protocol) is a numerical label assigned to each device used in network communication and helps in host or network interface identi!cation and location addressing.

Ndemo said all mobile !rms have up to December to have the identi!cation numbers for the estimated

18 million mobile internet subscribers.

“Every gadget must have an IP address. You cannot do anything you want and think you cannot be traced,” he said.

This will also address in-creasing cases of internet fraud.

The PS was speaking after attending an event to launch an E-commerce service from shoe-makers Bata. Bata home service will enable con-sumers make orders online, pay through Pesapal money service and have the shoes delivered to their homes.

40 LOCAL THE STAR Monday, August 27, 2012

BY STAR REPORTER

THE country’s gross government domestic debt increased by Sh20.8 billion to stand at Sh879.6 billion as at August 17, up from Sh858.8 billion at the end of June 2012, Central Bank’s statistic show.

This followed Sh8.4 billion, Sh6.5 billion and Sh6 billion increases in the Government overdraft at the Central Bank, stocks of

Treasury bills and Treasury bonds.

According to CBK, gross government domestic debt increased by Sh2.4 billion during the week upto August 22. CBK said this resulted from Sh10.6 billion increase in the stocks of Treasury bills, which was partially offset by Sh8.7 decline in the Government overdraft at the Central Bank.

Treasury bonds remained constant at Sh693.0 billion

during the week. “The average time to maturity of Government securities declined to 5 years and 1 month during the week ending August 17, from 5 years and 2 months in the previous week and 5 years and 4 months at the end of June 2012,” the CBK weekly bulletin said.

Additionally, the share of Government securities held by commercial banks, insur-ance companies and pension

funds increased from 49.1 per cent, 10.9 per cent and 22.8 per cent in June 2012 to 49.6 per cent, 11.0 per cent and 23.1 per cent, respectively. Holdings by parastatals and other inves-tors, which comprise Sacco’s, listed and private companies, self-help groups, educational institutions, religious institu-tions and individuals, de-clined from 5.3 per cent and 11.9 per cent to 5.1 percent and 11.2 per cent.

Domestic debt grows by Sh21bn in 2 months

★business UP TO DATE, ACCURATE BUSINESS INFORMATIONNEWS YOU CAN USE, EVERY DAY

Competition agency to rule on call rates

Can YOU outsmart the expert?

ALY KHAN’S STAR

PORTFOLIO

EABL is the bellweather counter at the Nairobi Securities Exchange. It is also the largest by market capitalisation weighing in at Sh181.087 billion and $2.1b and that makes it the heaviest of the heavyweights in Nairobi. This year, EABL has posted a return of +34.593 per cent which is an outrageously good return in this uncertain world of ours.

In fact, the likes of EABL and Guiness Nigeria have been on a tear for some time. The MD Devlin Hainsworth presided over a 145 per cent share price increase during his tenure at Guinness in Nigeria. The point is that these folks have been the Belles of the Ball for quite a while.

On Friday, EABL released its FY Earnings and we got a chance to take a deep dive into the company. The tape reads as follows; turnover and FY PBT increased by 24 per cent, earnings per share expanded 45 per cent. EABL only recently plotted its escape from its gilded Kenya cage; Uganda +38 per cent, Tanzania +76 per cent, the Great Lakes +30 per cent all confirm the merits of the more offensive regional game plan which will continue to accelerate and gain traction.

At the micro level, Tusker beer remains plain iconic and bullet proof. Sure competition might come and evidently is well heeled but its only nibbling at the edges. Spirits spiked big at +47 per cent with Johnnie Walker surging 74 per cent year on year. If you ever want the finger print evidence of the emerging African middle class that John-nie Walker data is it.

Hainsworth characterised the future as a ‘Golden Era’ and the business as a ‘strong business getting stronger.’ There was some noise on the balance sheet via a one off extraordinary gain but even after stripping that out, this is a muscular business which is only just starting to flex its muscles.

EABL is surely an anchor holding in any portfolio.

Shares go up and down and readers are advised that this column represents Mr Satchu’s personal opinions.

A LOOK AT THE EABL’S 2012 EARNINGS

BENEFIT: Calling rates might drop soon if mobile termination charges are reduced.

Photo/FILE

PACESETTER: EABL’s Johnnie Walker.