East Africa

Telecom player faults industry price wars

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A telecommunication player has advised his counterparts not to indulge in unjustified price wars again, arguing that they are harmful to the industry and unhealthy for the economy.

Speaking at a function to release its 2012 financial results in Kampala last week, MTN chief executive officer, Mr Mazen Maroue, said low call rates not only constrain telecom operators from making more investments but also lower their contribution to the economy through reduced tax revenues.

The telecoms industry entered a price war in 2010, stretching into 2011. According to the revenue collecting body, price wars in the telecommunication sector led to a shortfall of Shs24 billion due to the decline in average call rates.

Mr Maroue said: “We have ensure that we have an efficient market and call rates that will contribute to the economy’s development.”


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