Business News

CFTC okays TNM, Airtel Malawi distribution arrangement

Airtel and TNM Malawi
Airtel and TNM Malawi

The Competition and Fair Trading Commission (CFTC) has authorised the country’s two mobile phone network providers, Airtel Malawi and TNM, to have exclusive distribution arrangement, but subject to amendments of the anti-competitive clauses in their respective standard arrangements.

The two companies submitted independent applications to the commission for authorisation of exclusive distribution arrangements in accordance with Section 44 of the Competition and Fair Trading Act which mandates the commission to authorise conduct which can potentially lessen competition or have a potential negative effect on the economy as a whole.

In a statement, CFCT acting executive director Charlotte Malonda said they determined that the exclusive distribution arrangements by the two network providers have advantages that outweigh their competitive disadvantages.

“The commission has also ordered identification of distributors through public advertising to allow potential new entrants to contest and promote competition at wholesale level,” she said.

It was heard during the CFTC’s 36th meeting in Lilongwe that Airtel Malawi had instituted the exclusive distribution arrangement for its products to ensure that its subscribers in the country access recharge vouchers (airtime) and other related products easily and at uniform price regardless of whether they are located in urban or rural areas.

The move, according to Airtel Malawi, also ensures that customers have access to quality products in line with the Airtel brand.

On the other hand, TNM also submitted that its exclusive distribution arrangement ensures availability of its recharge vouchers and associated products wherever the company has network coverage and ensures that subscribers buy the products at the same price and consistent with the company’s brand.

The Malawi Stock Exchange (MSE)—listed TNM and Airtel Malawi are the country’s two cellphone network operators and there is cut-throat competition between the two companies in terms of provision of products and services.

Related Articles

Back to top button