End of unlimited packages in Mozambique prevents “market collapse”

“Os prices [das comunicações telefónicas] are no longer the same. We banned the implementation of unlimited packages, which were harming the economy. The 30-day packages continue, but the consumer cannot speak unlimitedly to the point where it costs him nothing”, explained today the chairman of the board of directors of the National Communications Institute of Mozambique (INCM), Tuaha Mote, in a television interview private STV.

At issue are consumer complaints regarding the withdrawal of unlimited data and voice service packages, within the scope of the entry into force, since Saturday, of the new average communications tariffs, defined by the three mobile telecommunications operators, following intervention by the INCM .

Tahua Mote said that the regulator eliminated unlimited data and voice service packages as a measure to avoid “unfair competition” between operators and allow greater market opening to attract investment in the sector.

“As regulators we assume that we limit package prices [antes] unlimited when dictating the entry of new packages. If we had let the market continue like this it would collapse. This is the reason why the regulator took the decision to set minimum prices”, said Mote, adding that, if the communications market collapsed, the country ran the risk of just “being left with one operator”.

“With the collapse of the communications market and whoever is responsible for regulating it had to make a decision”, he argued.

Mote also said that the regulator’s action aimed to protect the consumer, ensuring that they have affordable prices, but “that does not mean cheap and at low cost”.

“As a consumer, I would like to continue purchasing communications below cost (…). But as a regulator, we felt it was necessary to perform surgery on a finger to avoid amputating the arm”, added the president of the regulatory authority.

He also stated that operators are aware that “the market was not good”, hence he believes that the definition of prices was “a decision that had to be taken at this time”.

The communications regulator announced on Thursday that telecommunications services would become cheaper from Saturday, May 4th, on average, with the entry into force of tariffs in which operators adjust the minimum values.

“The intervention of the sector regulator allowed the price of telephone communications in Mozambique to be significantly reduced,” said the chairman of the board of directors of the National Communications Institute of Mozambique (INCM), Tuaha Mote, at a press conference to announce the new tariffs.

According to Mote, the average price of voice service in Mozambique would drop from six meticais (eight euro cents) per minute to five meticais (five cents), while the average price of data service would reduce by 2.30 meticais (33 cents) per megabyte to 1.08 meticais (26 cents). The average price of the SMS messaging service drops from 1.70 meticais (24 cents, per SMS, to 1.10 meticais (one cent of euros).

The president of the INCM at the time justified the average drop in prices as being a necessity for the sector to guarantee access to services for everyone, especially for the population with low purchasing power.

“INCM’s mission, as regulator, is to guarantee the availability of infrastructure, quality services, a competitive environment and affordable prices for consumers, aiming to guarantee the stability and sustainability of the market”, stated Tuaha Mote.

The update of average prices comes after the INCM published, on February 19, a resolution establishing new minimum tariffs in the telecommunications sector, particularly for national calls inside and outside the network, data services and messaging services.

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