Telcos in South Sudan increase tariffs amid exchange rate hike

(Photo Credit: techpoint.africa)

• MTN South Sudan, Zain South Sudan, and Digitel Holdings have jointly announced a tariff adjustment in response to an increase in the official exchange rate. 

• This follows an agreement between the National Communications Authority (NCA) and the Bank of South Sudan (BOSS) to align telecommunications service prices with the official exchange rate.

• The adjustment will occur in three phases from October to December 2024. The first change took effect on the night of October 18, 2024, followed by subsequent changes on  November 18 and  December 18, 2024.

The telcos confirmed that notifications about the initial adjustment were distributed via various channels and the decision was made after considering the potential impact on customers and the telecom sector.

Since the first phase began, operators have increased the cost of internet and mobile airtime subscriptions by 600 South Sudanese pounds.

Thus, subscribers now pay SSP1,565 for 100 MB with Zain, SSP1,790 with MTN, and SSP1,835 with Digitel, rather than the previous SSP900.

Meanwhile, a report indicated that the parliament will address rising telecommunications tariffs once the committee investigating alleged malpractices within telecommunications companies has submitted its findings. 

According to one lawmaker, these practices have significantly raised the cost of communication services in the country, affecting the general public. 

In August 2024, the Transitional National Legislative Assembly (TNLA) appointed a nine-member committee to investigate alleged malpractices by South Sudanese telecom companies. The move followed a motion by SPLM-IO legislator Juol Nhomngek, citing concerns over MTN South Sudan's practices and their negative socio-economic impact on the public.

The motion claimed that MTN South Sudan employees and ZTE Corporation, a partially state-owned Chinese technology company, were illegally collecting $50,000 and demanding 10% from subcontractors in exchange for contract awards. Similarly, a social media user raised concerns about the development.

South Sudan's telcos have been adjusting service fees since September 2022 to align with fluctuating exchange rates. On August 1, 2024, they made additional adjustments, citing the need to invest in technology, network reliability, and enhanced customer service.

Following the August adjustments, the country is said to have the most expensive Internet in East Africa and the second most expensive on the continent, with an average retail price of $2 per gigabit of bandwidth.

Source: https://techpoint.africa/2024/10/23/telcos-south-sudan-adjust-tariffs/