MTN Uganda has introduced a new offer calling and short message services offer that was yesterday rated to rattle the mobile telecommunications services market in Uganda, but current MTN customers interviewed are not happy with the new 1 shilling per second and 1 shilling per sms offer that was announced by MTN on Sunday.
Despite earlier excitement, customers are now reacting nimbly to the price reductions after realizing they will not call for 1 shilling per second and 1shilling per sms unless they buy another MTN line and distribute lines to each of the two people they want to call or sms at 1 shilling.
Who is benefiting from the low rates offers by MTN
Michael Kirema, an MTN subscriber says he expected a 1 shilling per second call rate, only to be told by MTN customer care today that the new offer benefits new MTN SIM cards.
John Wakabi, who rushed this morning to buy the new 3-in1 package told Ultimate Media that he was shocked to learn that he can only call the other two lines in the same pack at the 1 shilling per second offer.
“Many people already have more than one SIM card, and who I’m I going to give these two lines so I call them at 1 shilling. I tried to give one to my wife and she asked me for another phone since most of her contacts are on her old MTN number. I don’t see how we are going to benefit from this new offer,” Wakabi, a teacher says.
Telecom analysts interviewed say the 3-in1 offer is expected to benefit new subscribers to the MTN network, essentially a market strangling move to tap mobile phone customers on other networks to buy MTN cards to call and sms at the lowest rates with the MTN network. “It is also expected to see more people buying MTN SIM cards, since the low rate benefits calls to only two MTN subscribers,” Nelsom Mubiru of Acquasoft Tech systems said in an interview on Monday.
MTN Chief Executive Officer Themba Khumalo while announcing the new lowest rates also admitted that this 3-in-1 package is targeted at people who are not yet on the MTN Network.
“The number of options available to our six million customers keeps increasing every passing day, but more importantly we are now spreading Yarribaa opportunities to all those who are not yet on the MTN network as well – and offering them the lowest possible call charges in the country,” Khumalo said.
It remains to be seen how this promotion will impact on the mobile telecoms market in Uganda, and especially how the other operators Zain, Warid Telecom, Orange Uganda, Uganda Telecom, and Smile Telecom will respond.
Some customers are already concerned about the impact these new promotions of low call and sms rates will have on the quality of calls and sms delivery, given previous experiences of congestions and undelivered sms on some of the networks.