MTN: promotions are targeted at 5% of subscribers

Accra, May 23, GNA - MTN Ghana says its mega text and win promotions were usually targeted at only five per cent of their subscriber base.

In response to a questionnaire from the Ghana News Agency, Mrs. Mawuena Trebarh, Corporate Services Executive of MTN Ghana said, "with mega promotions, we usually target about five per cent of our subscriber base." The questions focused on the cost of sms for promotions, profit motive in customer rewards promotion, why the gamble with customer loyalty, and why the warning to 'participate responsibly'.

Currently, MTN has over eight million subscribers and has since last year been running mega promotions in line with the FIFA World Cup tournament, in which subscribers are to send text messages to short code 2010 at a premium rate of either 50 Ghana pesewas or 75 Ghana pesewas per text message. Some consumer rights groups in the country have cited those promotions vis-a-vis general poor quality service as reason to lead consumers to put off their phones for six hours on May 27, 2010 as a protest act.

Some have even threatened to take MTN and other telecom operators to court for the exorbitant sms rates they charge for their so-called mega promotions, saying the telecom operators were fleecing their subscribers through those promotions whiles their network quality remain poor. The profit motive of the MTN and the other telecom operators in promotions meant to reward customer loyalty has also been questioned by experts.

But Mrs Trebarh said "we believe the cost of the sms is reasonable" in that with respect to the current '90 Cars in 90 Days' promotion for instance, there were 90 cars at stake. She noted that contrary to assumptions by critics, it was impossible to get 100 per cent of MTN subscribers to participate in any kind of promotions, saying that the current participation levels suggested that many subscribers appreciate the initiative by MTN to reach out, engage and say 'thank you' for their continued patronage. But she did not say exactly what percentage of the over eight million subscribers actually participate in their promotions.

Mrs. Trebarh said the commercial component to the promotion was necessary because the returns from that made it possible for MTN to continue to make large investments in telecom infrastructure and to undertake community development projects.

"There is also a regulatory requirement one has to meet which has todo with the payment of taxes - every promotion attracts 21% tax on the cost of the SMS - we do fulfill all our legal and regulatory requirements and believe we contribute to achieving a win-win situation for all", she said.. She noted that rewards promotions are an equitable chance for MTN to give opportunity to as many of their loyal subscribers as possible to enrich their lives.

On the issue of why MTN has cautioned its subscribers to 'participate responsibly' in the 90 Cars for 90 Days promotion, Mrs. Trebarh said it was intended to alert subscribers of scams. Recently, "scammers" have been taking advantage of MTN promotions to send scam messages to unsuspecting subscribers telling them that they have won prizes but they needed to make some payment to collect their prizes. Mrs. Trebarh said winners in all MTN promotions would be contacted only through a phone call with 0244300000, adding that any contact other than from that number is a scam. She assured subscribers that "there are more interesting times with MTN ahead for customers, just keep your fingers crossed and see."