Home | News | CHEAPER RATES BAD FOR AIRTIME VENDORS

CHEAPER RATES BAD FOR AIRTIME VENDORS

10/08/2017 03:31:00 BY NTOMBI MHLONGO

Font size:

MBABANE - While the consumer is already enjoying the benefits of a competitive mobile communication sector, it is a different story altogether for airtime vendors on the streets.

This is because while the competition has come with lower prices, it has had a negative effect on the vendors as their business has been affected. The country’s telecommunications sector has become competitive following the arrival of a new mobile company, Swazi Mobile, which is now competing with Swazi MTN.
With the two now competing, the consumers are enjoying the competition in reduced rates.

Swazi MTN recently lowered its prices while Swazi Mobile came in with equally competitive rates.
However, the airtime vendors said they have nothing to celebrate as the cheaper prices have killed their business.
The vendors make money from the commission they get after selling airtime.

This means that the more they sell, the more money they make.
Some of the vendors mentioned that with the cheaper rates, the customers now purchase less airtime.
“The airtime is no longer being bought like it was the case before. This is caused by the fact that a person can now buy airtime worth E20 and use it for three days, so they see no need to buy more often. This, therefore, means that we make less money,” said Mthunzi Ndzabukelwako, who operates along the Mbabane Industrial Sites.

According to Ndzabukelwako, before the prices were reduced, he used to sell airtime worth E500 in one day but these days it was impossible.
“I now find myself stuck with airtime for three days. What this means is that the competition is good for the consumer but not for us because in this business we make money based on how much airtime we have sold,” he said.
Another vendor, Vukani Tsabe-dze, mentioned that he was happy with the arrival of Swazi Mobile as he was now making double from the business of selling airtime.