Kenyans and Rwandans travelling to Uganda will be spared roaming charges following the full implementation of the One Network Area agreement this week.

Uganda joined the two countries on January 7, allowing mobile networks to waive roaming charges for subscribers.

Although Kenya and Rwanda operationalised the agreement last October, the launch of the One Network Area was postponed after Uganda asked for more time to waive taxes on calls originating from the region.

Operationalisation of the One Network Area means a drop in calling charges across the three countries from Ksh25 ($0.28) per minute to Ksh10 per minute ($0.1).

READ: EA to adopt One Network Area, call rates to drop

Talk more for less

The drop in roaming charges is expected to stimulate growth in the telecommunications sector and promote cross-border trade. It means subscribers will make calls free of taxes when outside their network area.

“The results so far are good, looking at the call traffic between Rwanda and Kenya which joined first,” said Yvon Makolo, the chief marketing officer of MTN Rwanda. She said that South Sudan would join the network in the coming weeks.

The calling costs are expected to decline to $0.1 per minute for retail, and $0.07 per minute for wholesale rates.

The retail rate is the cost incurred in distributing calls within a country. The wholesale rate is the agreed interconnection rate between networks. Wholesale charges represent the fees the visited network charges the home network for letting its customers roam on its network.

“Our customers will no longer pay excessive call bills, and they don’t have to switch lines when they are in Uganda. We have been getting feedback from our callers between Rwanda and Kenya; it has been a huge relief,” said Pierre Kayitana, the public relations officer at Tigo Rwanda.

He said Tigo Rwanda is in touch with other telcos in Uganda to harmonise the new tariffs so that there is seamless communication.

On the One Network Area platform, the call rates for Tigo Rwanda subscribers to Uganda are Rwf60 ($0.08) per minute across all networks, to Kenya it is $0.9 per minute with a total waiver of roaming charges.

MTN Rwanda customers making voice calls to Kenya and Uganda are currently charged Rwf60 ($0.08) per minute, down from Rwf122 ($0.17). Making calls from the two countries will now be free, saving users Rwf51 ($0.07).

Calls while roaming in any of those countries is Rwf68 ($0.09) per minute across all networks.

Increased trade

When South Sudan joins, it will mark the completion of the telecommunication segment of the Northern Corridor projects, an initiative which is seen as key in spurring trade between the four countries.

Last year, the heads of state of the Northern Corridor countries signed an agreement to eliminate additional taxes and levies on international calls within the region, a move which is envisaged to spur economic development and co-operation between member countries.

Kenya’s largest network, Safaricom, has slashed the roaming charges in 21 countries in North and Central Africa, Europe and New Zealand.

In the review, subscribers travelling to Rwanda and the United Arab Emirates will enjoy reduced rates for calls made to Kenya.

READ: Safaricom slashes roaming charges in 21 countries

Bob Collymore, Safaricom CEO, said the reductions were a result of aggressively lobbying governments and its Vodafone affiliates.

The company has introduced a roaming bundle of Ksh200 ($2.2) through which subscribers can make 10 minutes of voice, send 10 SMS, and access 10MB of data. That means subscribers who travel to Egypt save nearly 80 per cent on 10 minutes of conversation, which previously cost Ksh900 ($9.7).

Last year, Safaricom announced a reduction of roaming charges in Rwanda, and is negotiating agreements in Uganda and Tanzania that could unlock more savings for subscribers.