Zantel asks TCRA to intervene in mobile price war

2 Mar 2011

Tanzanian mobile operator Zanzibar Telecommunication (Zantel) has called on the regulator the Tanzania Communications Regulatory Authority (TCRA) to tackle the problem of tariff cutting in the market, local paper the Citizen Daily reports. Zantel CCO Norman Moyo is calling on the TCRA to issue guidelines on tariff cuts for voice call services to safeguard end users from ‘unscrupulous operators’ which may temporarily reduce tariffs to entice customers to their network and then sell the customers off to another operator. Moyo argues that the practice could result in massive losses in the sector and even the shutdown of some cellcos, which in the long term will lessen competition. The tariff wars started in early-2010 and have led to prices of as little as TZS1.70 per second for off-network calls and TZS0.50 per second for an on-net call.