MTN cuts call rates, opens war

Kampala. MTN, one of the leading telecommunication companies, has slashed its call rates by 45 per cent. This means that an MTN subscriber can make a call to other networks here for no more than three shillings per second.
A statement issued last evening, indicated that the new rate of Shs3 per second takes effect immediately, claiming it is the lowest offer across all the networks—competition.
By press time, it was not clear yet whether competition will respond to this move although consumer activists and industry analyst say there will be a natural reaction to the development, which in most cases will favour the consumers.

Around the same time in 2010, Warid Telecom, before it was bought off sparked what became to be known as telecom-price-war when it cut its calls’ prices to Shs5 per second. In response MTN announced that it had slashed its rates to Shs3 per second as other players followed suit not to lose market share.
“With this change, MTN has taken a bold step of reducing its call rates by 45.45 per cent from Shs5.5 to Shs3 at per second tariff rates. The rate has also been reduced from Shs300 down to 180 per minute for Postpaid customers,” reads the statement issued last evening.

According to the Chief Marketing Officer, Ms Mapula Bodibe, the move is intended to offer customers more value, competitive rates and convenience. “In a bid to offer even more value for our customers, MTN has taken the unprecedented decision this year to reduce the calling rates for Ugandans, at a time when most prices are escalating upwards,” she said.
“With this new offer, MTN customers will enjoy the lowest calling rates, to any local network and only pay for what they have used,” she explained.


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