Airtel raises tariffs by 14 percent

Barely about a week after Malawi Stock Exchange (MSE)-listed mobile telecommunications network operator TNM announced an increase in its tariffs, another operator Airtel Malawi has also effected an increase

of about 14 percent on its rates.

According to a press statement released last week, Airtel announced that effective May 10 it will increase its rates by an average 14 percent in response to the increase in the cost of utilities, goods and services which have resulted in corresponding increase in the company’s

cost of doing business.

Airtel notes that in order to continue offering its customers the best possible services and to continue investing in infrastructure, it has become necessary to increase the tariffs.

According to Airtel, the operator’s base tariffs for Airtel to Airtel calls during peak periods are pegged at K72 per minute while

off peak rate is at K36 per minute. For calls to other networks customers will be required to pay K93 per minute and K55 off peak.

The telephone mobile service industry, which can be described as an oligopoly—a market with a few players—has TNM and Airtel as its major players.

On May 1, TNM effected a 14 percent tariff increase

with TNM to TNM calls being charged at K72 per minute while tariffs for calls to other networks rose to K90 per minute.

TNM explained that the tariff adjustment was due to high inflation in the cost of utilities, goods and services which have resulted in a corresponding increase in the company’s operating expenditure.