* Warns against uncompetitive behaviour
* Further cuts expected next year, 2014
(Adds details, background)
NAIROBI Nov 26 Kenya's telecoms regulator cut the rate mobile
phone operators charge each other for calls made across networks by 35 percent,
its director said, warning firms against using the reduction to undercut others
by lowering tariffs steeply.
Francis Wangusi, director general of the Communications Commission of Kenya
(CCK), said on Monday it had cut the rate to 1.44 shillings per minute from 2.21
shillings, backdating it to July 1 this year.
He said the regulator planned to further reduce the rate to 1.15 shillings
in July 2013 and to 0.99 shillings a year later.
"We're very keen to punish any uncompetitive behaviours. Any competitors
that think they can use this to undercut others will be punished," he told a
India's Bharti Airtel triggered a price war in 2010 when its
Kenyan unit slashed tariffs by more than half to entice users from market leader
An executive at a telecoms company who did not wish to be named told Reuters
operators could increase revenues if none of them initiated a price cut
Other operators in the country are Telkom Kenya, controlled by France
Telecom and Essar Telecom, operating as "Yu".
The telecoms industry is among the fastest growing in the east African
economy of 40 million people, of whom 29.7 million had mobile phones as of
October, CCK data showed.
(Reporting by Kevin Mwanza and Duncan Miriri; Editing by George Obulutsa and