Mozambique’s publicly-owned telco Telecomunicações de Moçambique (TDM) is set to hike its local call prices by 35% from the start of August. The cost of a local call will rise from MZM600 to MZM800 a minute, exclusive of VAT, an increase that far outstrips the country’s rate of inflation, currently around 10% a year. Additionally, calls to mobile phones – already considerably more than fixed-to-fixed calls – will increase by 19%, from MZM5,480 to MZM6,500 a minute. The dominant operator has not yet offered any justification for the radical changes in its price structure. Long distance call prices remain the same. TDM’s mobile subsidiary has announced its own 30.5% rise in basic call charges, though it has justified this by recalculating its definitions of peak and off-peak times, also adding a new ‘super off-peak’ tariff in the twilight hours, and by reducing its SMS and mobile-to-fixed charges by 30% and 12% respectively.