Uganda telco consolidation leads to higher prices

A fortnight ago, market leader MTN Uganda raised its voice and data tariffs by 12.5 and 20 per cent respectively, in a move that company officials said was in response to changes in the operating environment.

Calling rates have started rising in Uganda as the effects of the Airtel-Warid merger earlier this year begin to take effect.

In the less than six months since the merger, MTN has increased its tariff line three times, the latest being on October 10, when the company attributed its actions to a drop in the Ugandan shilling against hard currencies.

However, according to the Bank of Uganda’s monetary policy statement for August, the shilling’s depreciation against the dollar was just 0.8 per cent.

However, insiders at MTN claim their competitors will pay a heavy price if they don’t adjust their tariffs because revenues are below the cost of production.

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About Andrew Kwabena

The Editor of MoneyInAfrica

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