Uganda’s price war escalates

29 Jun 2011

Following the Uganda Communication Commission’s (UCC) u-turn earlier this month, Ugandan cellcos have continued to lower prices. Warid Telecom and Uganda Telecom (UTL) have taken advantage by cutting prices and launching new promotions. Warid now charges UGX60 (USD0.02) per minute for calls within its network and UGX180 per minute outside, having reduced the price from UGX480 to UGX300 and then again to its current rate. It also launched a reward scheme whereby a customer receives an additional 200% of their top-up. For example, buying time worth UGX5,000 would give the customer a bonus of UGX10,000. UTL’s promotion allows customers to pay UGX500 for unlimited calls all day within its network. MTN Uganda, Airtel and Orange Uganda are expected to cut their rates in line with their competitors.

As previously reported by TeleGeography’s CommsUpdate, the UCC released plans for a directive that would put a price floor on interconnection rates, and a 90-day limit on promotions with a 90-day period in between each promotion. The proposal is intended to stabilise the highly competitive sector and simplify rates for customers struggling to keep track of the ever changing prices and promotions. After releasing conflicting reports the UCC clarified that the decision was still in the planning phase and not yet in operation.