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Mobile phone operators defend high tariffs

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The Association of Telecommunications Operators Limited (Atol) has said Malawi phone users are enjoying much lower tariff rates, trashing a British Broadcasting Corporation (BBC) report published last month which places Malawi as one of the countries with high mobile phone tariffs.

The BBC report, quoting the International Telecommunications Union (ITU) revealed that on average Malawians use more than $12 (about K5 400) per month on mobile phones.

According to  a report, consumers spend about K5 400 on credit
According to a report, consumers spend about K5 400 on credit

But reacting to a BBC report, Atol president Willem Swart said the report does not take into account dynamic discounted rates that are typical of telecommunication industry in Africa.

“In reality, Malawi mobile phone users enjoy much lower effective tariffs rates than those propelled in the reports published by the ITU.

Swart, who is also chief executive officer for TNM, said globally, headline or rack rates for services such as telecoms, hotels and airlines are not usually what consumers pay for.

He said effective rates that consumers actually pay for are much lower.

“Any study using rack rates would then not provide an empirical accurate finding based on reality on the ground,” said Swart.

Swart said Malawi’s effective prices are not high by regional standards, “but may be below standards.”

He added: This, therefore, challenges the accuracy of the report that forms the basis of the BBC report.”

The Atol president said as an industry, they are committed to continuing using discount and promotional approach which he said has received positive uptake by consumers, more especially those from rural areas.

Swart said jointly or individually, the telecommuniation industry in the last decade has made significant capital investments exceeding several hundreds of millions of dollars into Malawi.

“The industry has done this and continues to do so despite the comparatively high cost of doing business in Malawi because we believe that this will contribute to the development of the country as a whole and over time,” said Swart.

Meanwhile, the BBC report said in neighbouring Mozambique, consumers spend just more than a quarter of their incomes using their mobile phones.

It said the figure in Kenya and South Africa is significantly lower, amounting to less than five percent of average monthly earnings.

The report said in Malawi, charges for making calls from one network to another have remained high, meaning many people prefer to have two Sim cards.

 

 

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2 Comments

  1. Atol is an interested party. Anyone can just google to compare international calling rates and you will be shocked that Malawi has indeed one of the highest international calling rates. Unfortunately, our mentality has always been to make more money forgetting that its about the quality of service you offer to the public that maters for our human developments. Thats why we are ready to squeeze the poor so that we make more profits. What a shame! Your friends empower people so that everyone enjoys the dignity of being a human being.

  2. This Atol guy is insulting our intelligence. The $12 is the AVERAGE amount, which,if accurately computed, should take into account all the discounts. That the so-called “dynamic discounted rates” are less than $12 is neither here nor there.

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