MTN Uganda has introduced MTNWeb2u, a service that allows Ugandans living overseas to purchase airtime for friends and relatives living in the East African country, via the Internet, says Erik van Veen, MTN Uganda chief commercial officer.
Uganda`s Simba Telecom and software developer True African developed the software supporting the service.
Patrick Bitature, CEO of Simba Telecoms, believes the service is a good way for mobile operators and software developers to increase revenue resources. "Most people in Uganda battle to afford the luxury of airtime, leaving the diaspora as an untapped market."
The service takes advantage of convergence opportunities that exist between the Internet and telecoms platforms, helping to fill this market gap, says Bitature.
"We believed there was an opportunity to provide prepaid airtime to the Ugandan diaspora living abroad as a means to assist their families and friends living in Uganda."
Bitature says foreign remittances to Third World countries form a major contribution to Uganda`s gross domestic product, with over 1.2 million Ugandans living in mainly English-speaking countries around the world including the UK, the US, Canada, SA, Kenya and Dubai.
Alternative channel
Traditionally, money is sent back home via money transfer operators, which charge high fees, as well as other informal transfer channels, he says.
"This service allows Ugandans abroad the opportunity to remit funds via an alternative channel."
Bitature says Ugandans living abroad would have to log on to the Simba Web site to purchase airtime, and enter the recipient`s mobile number, as well as the buyer`s credit card details.
Prepaid units range from around 2.20 euro to 4.40 euro, says Bitature, who explains both the buyer and the recipient will be notified of the transaction immediately. The cost of the actual transaction (credit card clearing costs and PayPal costs) are borne by the customer and added to the face value of the airtime voucher purchased.
Bitature believes the project is sustainable and the investment will be recouped in the margins earned from the airtime sales over time, which will build the service into a strong income generator.
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