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Tanzania telcos get down to price wars

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Prodigal Son, Apr 26, 2010.

  1. Prodigal Son

    Prodigal Son JF-Expert Member

    Apr 26, 2010
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    Telecommunication firms in Tanzania have taken their war for subscribers to calling rates after years of competition based on wide area coverage, quality communications and technology innovation.

    According to Tanzania Communications Regulatory Authority (TCRA) acting corporate communications manager Victor Nkya, the price war will continue to the benefit of customers with the firms spreading to rural areas to further boost their numbers.

    This calling rates-based competition was pioneered three years ago by Tanzania Telecommunication Company (Tigo) which capitalised on low tariff packages to increase its client base from 1,191,678 in 2007 to 4,178,089 customers of last December.

    After the introduction of Tigo Xtreme under the longer longa II campaign, where Tigo subscribers were able to call for only Tsh1,500 ($ 1.15) for 12 hours of daytime, the firm’s subscriber base rose to match that of the big players in the industry.

    Last year Tigo introduced Tsh1 ($0.0007) per second followed by Zanzibar Telecomm Company (Zantel), Vodacom Tanzania and last week by Zain Tanzania.

    When Vodacom introduced its Tsh1 per second tariff, Tigo came up with Tsh0.50 ($0.0003) per second tariff for its subscribers.

    Tigo argued it was doing so to grant their customers freedom to access today’s world in a simple manner by giving them “as a special tariff they can afford and manage to strive against the social life.”

    Zain joined the fray last week via a Tsh1 per second tariff for its subscribers while new entrant Sasatel announced a Tsh0.50 ($0.0003) per second tariff .

    According to Mr Nkya, off network tariffs might climb-down as cap-price agreed for interconnection charges is $0.65 per minute up to 2012, but firms could agree to charge a zero rate.

    Fitting outcome

    This fall in rates goes well with the country’s decision not to restrict the number of telephone service providers thereby letting fair competition push the rates down from a high of $1 per minute a decade ago to the Tsh0.50 per second being flaunted by firms all over.

    There are 14 licensed telcom operators in Tanzania but only seven have started operations namely TTCL and Zantel as mobile and fixed lines, Zain Tanzania, Tigo, Vodacom, Benson Informatics, and Sasatel.

    Vodacom has the largest subscription, with 6,883,661 customers, followed by Zain (4,910,359), Tigo (4,178,089), Zantel (1,378,595), TTCL mobile (115,681), and Benson (3,101). Total registered phone holders are 17,642,408 as at the end of last year.

    Those that are yet to start are Six Telecom Company Ltd, ExcellentCom Tanzania Ltd, Rural Netco Ltd, Rural Netco Ltd, Epocha & Golden Ocean (T) Ltd, My Cell Company Ltd, Seacom Tanzania Ltd and Smile Communications Tanzania Ltd.

    The communications industry, is now a multibillion-shilling sector led by mobile telephony generating over Tsh2 trillion ($ 1.54 billion) revenues annually.

    source; The east african
  2. Eliphaz the Temanite

    Eliphaz the Temanite JF-Expert Member

    Apr 26, 2010
    Joined: Jan 19, 2010
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    Vita vya panzi furaha ya kunguru!
  3. Chapakazi

    Chapakazi JF-Expert Member

    Apr 26, 2010
    Joined: Apr 19, 2009
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    And how do you explain this:
    Tigo Hikes Airtime Tariff 'Silently'
    Daily News/22 April 2010

    Dar Es Salaam — MIC Tanzania, a mobile phone operator trading as Tigo, has 'silently' hiked its airtime tariffs, a move that industry watchers describe as stealing from the unsuspecting customers.

    According to the cellular phone operator's website, Tigo subscribers actually pay, albeit unaware, 25 per cent over and above the tariff rates that the company is propagating.

    The tariff rate for the company's peak hours that start at 6pm through 10pm is 1/25 against the widely publicised 1/- per second.

    The tariff increase took effect soon after the firm announced its record lowest tariff of half a shilling per second after the first minute, the talk of the town currently.

    According to Industry sources, the 6-10pm are the most productive hours in which mobile phone companies generate over 50 per cent of their revenues. This is reportedly the time when majority people are through with work and have ample time to socialize with family members, relatives and friends.

    The four-hour hike in tariff by Tigo, informed sources say, enables the company to compensate for the lost revenues during the hours in which subscribers talk at the half shilling per minute.

    Interviewed people have criticized the company, saying even if the tariff hike sought to compensate for the lost revenues, the hike should have been communicated to the public through proper means, not the website whose access is limited to few people compared to those subscribing to the network.

    "Informing the public about a price hike through the website is merely stealing from the majority people who do not have access to the internet - we make calls not knowing exactly how much we are being charged," one irritated Tigo subscribers complained to the 'Daily News'.

    Amina Athuman a Dar es Salaam resident said that the company should have advertised the increase just as they do when they reduce tariff so that people should make choices on how and when to make calls.

    "When they reduce tariffs they don't just advertise on their website - they advertise in various media of communications - radios, newspapers and televisions - to reach majority of Tanzanians.

    But now they have increased tariffs, they opt to advertise on the web which only few people have access to," Ms Athuman charged.

    But, Tigo Public Relations manager Jackson Mbando denied claims of tariff increment, saying the company was always striving to reduce their prices to become the cheapest and widely affordable.

    He said that the company has no intention to increase tariffs, adding that the 1.25 per second tariff was tax inclusive. However, the announcement on the website has stated that the charges are tax exclusive.
  4. Mama Nim

    Mama Nim Senior Member

    Apr 29, 2010
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    Wezi watupu, wote. TCRA nao siju vipi?