Nairobi, April 19 -- Safaricom's subsidiary in Ethiopia has been handed a boost after the country's telecommunications regulator cut mobile termination rates (MTR) by a quarter, making it less costly to connect its customers calls with those of its rival Ethio Telecom.

The Ethiopian Communications Authority (ECA) has cut the rate to 0.23 Ethiopian Birr (Ksh0.54) per minute from ETB0.31 (Ksh0.72) per minute, translating to a 25.8 percent reduction. The rates become effective on May 1 and run until the end of April next year when a further cut will be made.

The cut comes after the regulator carried out a cost study, which it said was aimed at establishing a "level playing field" and creating an environment where the two operators- Ethio T...