JOY OF SLASHED PHONE CALL RATES COULD BE SHORT-LIVED

MBABANE – The joy of enjoying reduced mobile phone rates could be short-lived.

This effect could come about as a result of Swazi MTN’s declaration by Swaziland Communications Commission (SCCOM) as a dominant player in the mobile voice market.

A telecommunications industry expert, who unpacked what declaration of dominance means, explained that it effectively meant the mobile industry player, which had been found to be delighting its customers for varying reasons, would be forced to abide by certain obligations which would either avoid or eliminate certain practices that may prevent unfair competition. 

Dominant

In the case of Swazi MTN, which has been recently been declared dominant by SCCOM,  it was pointed out that the mobile operator could soon be compelled to abide by obligations which, among other things, include, but not limited to, not offering differentiated on-net or off-net tariffs.

The expert clarified that this obligation effectively meant MTN could be forced to charge the same rate for calls made to users of their network or those of the competitor, namely, Swazi Mobile.

It was explained that the long term effect of this obligation included, but is not limited to, Swazi MTN being forced to either reduce or halt certain promotions where customers enjoy ridiculously low rates because they could derive far less monetary value or benefit from encouraging customers to remain in their network. 

“At worst, the company could consider halting some of their products because they will be forced to derive new strategies of cushioning the effect of not offering differentiated on-net or off-net tariffs,” explained the expert.

Asked what generally prompts the declaration of dominance of a mobile operator, it was explained that being found to be engaged in anti-competitive behaviours such as clinching exclusive agreements with retailers that disadvantage the competitor or reducing tariffs below cost normally initiates the process of declaring dominance.  

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