Tigo defends tariff increase

Friday 20 February 2015

Ms Cecile Tiano 
In Summary
The company’s interim general manager, Ms Cecile Tiano, said the mobile network operator plans to establish 843 new sites that would provide 3G internet services as the firm seeks to connect Tanzania to the global economy.

Dar es Salaam. Tigo Tanzania yesterday announced a $120 million (Sh221 billion) expansion plan for 2015.The amount incorporates a 20 per cent increase from last year’s $100 million and is expected to improve service provision countrywide.
The company’s interim general manager, Ms Cecile Tiano, said the mobile network operator plans to establish 843 new sites that would provide 3G internet services as the firm seeks to connect Tanzania to the global economy.
“Expanding both 2G and 3G remain critical to us in order to increase access to our products and services but we are also looking at new technologies. We will also look at new technologies like 4G technology as we expand to rural areas,” she said.
Mobile operators have been announcing increased investment plans after steeply raising prices of internet bundles.
Tigo subscribers who previously got 100 megabytes in the Mini Kabang daily bundles now receive only 8MB for the same price.
Vodacom Tanzania has also done the same and its managing director, Mr Rene Meza, explained that the bundles were on offer and that they could not continue with low tariff rates in the current business environment.
This was echoed by Ms Tiano, who said Tanzania had the lowest tariffs in East Africa. “We cannot continue to finance such huge investment given the current environment. Tanzania has the highest taxation levels in the East African region with the lowest tariffs. We adjust our tariffs to move on and contribute to the growth of the country,” she said. Ms Tiano said the planned investment will also address some of the network hitches that are facing customers of voice, data and mobile financial services.
Communications, Science and Technology Deputy Minister January Makamba recently directed Tanzania Communications Regulatory Authority (TCRA) to seek explanations for the tariff changes.
“The regulator has asked us some questions and we are gathering all information to tell them in time,” Ms Tiano said when asked why the operators did not notify customers of the tariff adjustment.
Last year, Tigo introduced cross-border mobile payment to Rwanda, Interoperability which allows cross-network mobile payment in partnership with Airtel and Zantel, Facebook Kiswahili version and profit sharing through Tigo Trust Account.
The firm also said subscribers had increased from seven million in 2013 to nine million in 2014.
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