Uganda call rates start climbing from rock bottom
BUSINESSBy BiztechAfrica - Sept. 4, 2011, 10:30 a.m.
Uganda’s mobile operators have started increasing their call charges, after a price war drove them to unsustainable rock bottom rates.
MTN Uganda last week increased its call tariffs, in some cases by as much as 100%.
The company said the low per second rate it had been charging was unsustainable and would hamper investment in more infrastructure.
Shortly after news of this price hike, Airtel increased its per second call rate to 4 shillings per second, in line with MTN’s new rate.
Operators in Uganda have been engaged in a fierce price war in recent months.
While the low prices may have grown subscriber numbers, they did little to boost operator revenues and their tax contribution. It also made increased infrastructure roll-out less viable.
Competing operators Warid and Orange have yet to react to the price increases.
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