The president of INCM, Mozambique’s communications regulator, said on Tuesday it had instructed telecoms operators to withdraw unlimited data and voice bundles to avoid “market collapse” and “unfair competition”.
“Prices [das comunicações telefónicas] no longer the same. We banned the introduction of unlimited packages that harmed the economy. The 30-day packages continue to be valid, but the consumer cannot talk unlimitedly without it costing him zero,” Tuaha Mote, chairman of the board of directors of the National Institute of Communications of Mozambique (INCM), explained in an interview with private television STV on Tuesday.
The matter concerns consumer complaints about the cancellation of unlimited data and voice service packages as part of the new average telecom tariffs determined by the three mobile operators coming into force on Saturday, following the intervention of INCM.
Tahua Mote said the regulator had scrapped unlimited data and voice bundles as a measure to avoid “unfair competition” between operators and ensure greater market openness to attract investment in the sector.
“As regulators, we are supposed to limit the prices of packages [antes] unlimited when dictating the input of new packages. If we let the market continue like this, it would collapse. It is for this reason that the regulator decided to set minimum prices,” Mot said, adding that in the event of a collapse of the communications market, the country risks simply “being left with one operator.”
“With the collapse of the communications market, whoever is responsible for regulating it had to make a decision,” he said.
Mott also said that the regulator’s actions are aimed at protecting consumers by guaranteeing them affordable prices, but “this does not mean cheap and at a low price.”
“As a consumer, I would like to continue to purchase communications equipment below cost (…). But as a regulator, we found it necessary to perform surgery on the finger to avoid amputation of the hand,” added the president of the regulator. .
He also said operators were aware that “the market is not healthy” so he believed pricing was a “decision that had to be made in the moment.”
The communications regulator announced on Thursday that telecommunications services will become cheaper on average from Saturday, May 4, following the entry into force of tariffs in which operators adjust minimum values.
“The intervention of the industry regulator has enabled a significant reduction in telephone prices in Mozambique,” Tuaha Mothe, chairman of the board of directors of the National Institute of Communications of Mozambique (INCM), said at a press conference at which the new tariffs were announced.
According to Mote, the average price of voice services in Mozambique will fall from six metichays (eight euro cents) per minute to five metichays (five cents), while the average price of data services will drop by 2.30 metichays (eight euro cents) per megabyte. to 1.08 meticais (26 cents). The average price of an SMS service is reduced from 1.70 metikai (24 cents per SMS) to 1.10 metikai (one cent euro).
The president of INCM at the time justified the average drop in prices by the need to guarantee access to services for everyone, especially for populations with low purchasing power.
“INCM’s mission as a regulator is to ensure infrastructure availability, quality services, a competitive environment and affordable prices for consumers, while striving to ensure market stability and sustainability,” said Tuaha Mothe.
The update to average prices comes after INCM published a resolution on February 19 establishing new minimum tariffs in the telecommunications sector, especially for national on- and off-net calls, data services and messaging services.