After failing to convince CCK to shelve the plan, Kenyan operators met Kibaki last month and urged him to intervene in order to save the telecom sector from collapsing due to low revenue and lack of funds to fuel network expansion and growth of the sector.

The Kenyan government is assessing the impact of low interconnection rates on the country's economy. The report on the impact of low interconnection rates is expected to be released this week. However, the order to stop further interconnection rate cuts by Kibaki has already been implemented by the CCK, giving telecom operators a reprieve from a looming renewal of tariff war.

African telecom analysts are also warning that if the region continues to experience further declines in interconnection rates, massive job losses, deteriorating quality of service and loss of government revenue will be inevitable.

"The move by the Kenyan government is positive because it will save the sector and the government from serious revenue loss. We are hoping that other African countries will do the same," said Amos Kalunga, telecom analyst from Computer Society of Zambia.

Since the arrival of mobile communication in Africa more than 15 years ago, mobile service providers had been left to determine their own interconnection rates, but many African governments are now taking steps to regulate the fee.