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Scrapped roaming fees boost SMEs

By Vanessa Haarhoff, ITWeb African correspondent
Johannesburg, 05 Oct 2006

African mobile operator Celtel, which recently scrapped its roaming fees between the East African countries of Uganda, Kenya and Tanzania, believes the initiative will have benefits for local entrepreneurs.

Steve Torode, CEO of Celtel Tanzania, says local business growth in the area should rise substantially due to the initiative, named One Network. It will give local entrepreneurs a chance to become more established, he says.

Torode notes that roaming for many customers was prohibitive: "One had to pay high costs to receive and make calls when roaming, which was preventing growth in the region.

"There are no deposits and no signing on fees. It is open to all Celtel subscribers and will be a tremendous tool for the many entrepreneurs, traders and businessmen who engage in business across the East African borders."

Veronica Ogeta, marketing manager of products and services for Celtel Kenya, says the price of calls will be cut by about 40%.

Ogeta says Celtel is hoping to extend this initiative to other countries in which Celtel is based in a bid to promote growth in subscriber numbers on the continent.

The project has already been initiated in the central African countries of Congo, the Democratic Republic of Congo and Brazzaville, she says. Ogeta notes the company is looking to begin the project in West Africa soon.

Related story:
Celtel ends roaming charges in E Africa

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