Friday, September 2, 2011

Airtel Uganda Increases Tariffs Amid Rising Inflation

Airtel yesterday became the second communications company in Uganda to up call tariffs with new rates starting Monday next week.

The increase has been occasioned by the higher costs of doing business in Uganda, according to Mr V.G. Somasekhar, the managing director of Airtel Uganda.

Customers will pay Shs4 per second, an increase from Shs3 per second or Shs240 per minute instead of Shs180 per minute.

The new rates will apply to all calls on the Airtel network and other networks, according to a statement from the company.

“The telecom business is trapped in a cycle of rising business costs, which is significantly threatening the level of service delivery in the industry,” Mr Somasekhar said yesterday. “The upward adjustment in tariffs will ensure the company continues to meet its operational costs and maintain its unequalled level of service delivery in the market.”

Airtel’s announcement came just a day after MTN Uganda doubled its calling tariffs from Shs2 per second to Shs4 per second, also citing the increasing cost of doing business.

The economy is struggling with the depreciating Shilling, the rising cost of fuel and persistent power blackouts.  This week, inflation hit a record 20% mark.

No comments: