Why one network area is yet to ease EAC call rates

Making phone calls within the East African Community (EAC) remains costly despite the efforts to eliminate roaming charges through the One Network Area (ONA) program. Even though all six partner states—Burundi being the latest addition—have joined the ONA, the cost of calling neighboring countries remains high.

Surprisingly, calling China or India from Kenya is cheaper than calling Tanzania or Burundi, despite these countries also being part of the ONA. The Communication Authority of Kenya’s data indicates that the ONA hasn’t succeeded in reducing call charges as intended.

The ONA initiative aimed to lower telecommunications costs to facilitate trade in the region. However, the expected reduction in call charges has not materialized. The primary issues contributing to the high costs include differing tax regimes across the region, a lack of integrated payment systems, and grey traffic, which disrupts call quality and reduces revenue.

Adrian Njau, acting CEO of the East African Business Council, pointed out that the unharmonized taxes are a major obstacle. He emphasized the need for the EAC partner states to harmonize taxes and charges on roaming services to make communication more affordable and foster regional integration.

Despite the challenges, the telecommunications sector is considered one of the more integrated areas. However, the sector still faces constraints, such as incomplete coverage with mobile 3G data, based on 2020 International Telecommunication Union data.

Recent statistics from the Kenya Communication Authority show significant variations in inbound roaming traffic from EAC partner states to Kenya. For example, Uganda had 23 million minutes of incoming voice traffic, while Burundi had just 725 minutes.

Burundi had the highest average international call rate in 2023, with Sh100 ($0.77) per minute, followed by Tanzania, Rwanda, and Uganda with lower rates. The ONA was designed to address these disparities by eliminating roaming charges, waiving excise taxes, and establishing price caps, but harmonizing tariffs across different operators remains a work in progress.

Andrea Aguer Ariik, the EAC Deputy Secretary-General for Infrastructure, expressed optimism that the ONA will eventually reduce roaming charges and enhance regional integration. The EAC partner states committed to the ONA in 2014, and while most countries have joined, Tanzania came on board only in 2021.

Recent studies are underway to review and potentially adjust calling rates within the EAC. The EAC plans to compare these rates with other economic communities, such as the EU, to ensure competitive pricing.

As of August 1, 2024, Burundi has officially joined the ONA, and new tariffs for regional roaming have been implemented. The Burundi Telecommunications Regulation and Control Agency has also directed mobile operators to provide clear information on tariffs and billing to ensure transparency and a satisfactory user experience.