Tigo launches cheapest default call rate in Ghana

Tigo Ghana has launched a new call rate package of 3Gp per minute of calls from a Tigo to a Tigo numbers, and 8Gp per minute of calls from Tigo to other networks.

The 8Gp per minute off-net calls is a default rate, but customers would need to register for free by dialling *555# to enjoy the 3Gp per minute on-net calls. Chief Executive Officer of Tigo Ghana, Carlos Caceres told journalists the new rates replace all other promotional call rates on Tigo and was intended to make it easy for Tigo customers to know exactly how much they are spending. “The many call tariff plans and promotions in the telecom market are very complex for the average phone user to understand and they make it difficult for customers to know how much they are spending.

“I am talking about three to four separate promotions and tariff plans by each operator, multiplied by five operators and that becomes too much for the customer to chew on.”

Mr. Caceres noted that for those who were on more than one network, the several tariff plans becomes even more confusing because it is difficult to monitor “how much you are paying during the day, how much you are paying at night, how much you are paying on weekends, and the different charges for different locations at any point in time.”

He said the new rates Tigo had announced were straight forward and they remain unchanged for 24 hours every day, no matter the location or time of day, so customers do not have to get confused about different charges at different times of the day.

Mr. Caceres said the reduction in the tariff rates was also one of Tigo’s ways of welcoming the 6th operator, Glo into the market, which is now officially slated for November 17, 2011.

“We are prepared to welcome competition – but more importantly this move is a more of sign that we are listening to our consumers and sign that we want to move away from the days of complex tariff plans to a simple one like we have done,” he said.

Tigo’s on-net calls used to be 7Gp per minute and off-net calls was 12Gp per minute, which were some of the lowest on the market.

But with these new tariffs, Tigo’s subscribed on-net call rate of 3Gp is officially the lowest in country, whiles the default 8Gp per minute for off-net calls is equal to that of Airtel’s.

The Millicom Group, operators of Tigo said in its third quarter report, ending September 2011 that the telecom price war in Ghana is affecting its revenue adversely, and the company also recorded a loss of more 157,000 customers between August and September this year in Ghana.

Mr. Caceres acknowledged that the Ghanaian market was highly competitive compared with other emerging markets like India and China, but was he confident that Tigo’s new strategies going forward would make the company and net winner. He noted Tigo Ghana customers are demanding more than the basics, and Tigo was also investing into data, value added services and other relevant solutions to meet customers at the point of their need.

“We are also reviewing our data packages and very soon we would be announcing packages and solutions that would excite our customers,” he said.

Tigo is not the only company being hard hit by competition in Ghana, as all the operators in Ghana have been recording dwindling revenues over the past few months.

Analysts have said that for a population of 24 million plus, six licensed telecom operators in Ghana was rather on the high side, but government had shown no signs of listening to that argument.

Meanwhile, telecoms revenues keep dwindling whiles they keep reducing call and data tariffs to remain competitive, and regulators and related institutions also continue to inflict huge and discriminatory taxes, levies, fines and penalties on the operators.