Kampala - The company slashed the price of its 200MB bundle from Ushs115,000 (US$66/R460) to Ushs95,000 (US$54/R380) less by 17.4%. It also reduced the price of its 500MB bundle from Shs220,000 to Ushs185,000, down by 25.4%.
It has also replaced its 1GB bundle which cost Ushs395,000 (US$226), with the one of 2GB at a mere Ushs295,000 (US$169), for the heavy duty users. The three packages which now come as MTN Broadband Plus formerly branded Hassle Free broadband will continue to be renewable monthly.
“We understand that the customer deserves value for money, require affordability, control of spend, ease of access and speed. Hence, we packaged MTN broadband to offer hassle-free Internet connections, hassle-free speeds at a hassle-free price,” said MTN's Chief Commercial Officer Erick Van Veen.
He also said that the company had changed the billing method of wireless hi-tech worldwide Interoperability for Microwave Access (WiMax) product. The product was launched in July this year with time-based billing service but has changed to a usage-based billing approach.
Veen explained, “Most ISPs use a time-based model for dial-up service whereby customers are charged for a specific period of connection irrespective of whether they are using the internet or not. Usage-based billing on the other hand requires that customers pay for what they use.”
This means that customers will save money by not paying for broadband they have not used.
He added, “Our major motivation for using this approach was to offer our customers a world-class, cost-effective service, given the constraints on satellite bandwidth in Africa.”
The announcement comes hot on the heels of an outcry by Uganda's Minister of Information and Technology Communication Dr Ham Mulira on the cost of internet services in Uganda compared to other countries. The minister said that institutions were paying up to Ushs87.5 million (US$50,000/R350,000) per month for only 20 Mbps per month for a client using about 5,000 computers. In his view, Dr Mulira said the real cost should be at least Ushs1.75 million (US$1,000/R7,000) per month.
He however noted that the government was addressing the problem through the liberalized information, and Communication Technology (ICT) environment, including permitting self-provision of services. “We know that through good regulation and competitive pressure, the private sector can bring down the cost of services,” Mulira said.
This years, two new telecommunication companies; Hits Telecom and Warid Telecom Uganda announced that they would launch their services before 2007 ends. The companies are steadily rolling out their infrastructure with services such as WiMax, WiFi, GPRS and on their GSM networks. This means that in the near future, consumers of Internet services are most likely to get cheaper prices for quality internet services as it has been with the calling rate.
The entry of MTN Uganda and Uganda Telecom in the telecommunications sector made Celtel Uganda the first company to set up shop in Uganda to cut calling costs and prices of mobile handset from 1999 to date.
Initially, the cost of owning and using a mobile phone in Uganda was over Ushs1, 050,000 (US$600/R3,500). Today, a person can own a mobile phone for a mere Ushs50,000 (US$28/R200) or so – thanks to competition.
So far, MTN has managed to extend this type of service to at least 30 towns upcountry.
Other service providers of a similar product are Celtel Uganda, whose GPRS/EDGE USB gadget that provided wireless Internet to laptop users costs Ushs350,000. Customers are then charged airtime for as little as Ushs1,750 (US$1/R7) and Ushs100,000 (US$57/R400) for a limited amount of bandwidth, depending on their demand.
