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MTN quietly ups international call tariffs

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 11 Mar 2016
MTN subscribers calling Burundi will now pay 57% more than before.
MTN subscribers calling Burundi will now pay 57% more than before.

MTN has increased its international calling tariffs, with the rate of calls from South Africa to some countries rising as much as 57%.

MTN confirmed to ITWeb that its new international calling tariffs came into effect on Saturday, 5 March. MTN customers in South Africa began complaining of disappearing airtime earlier this week, alleging they were not informed that international call rates had increased.

MTN was not clear in its response to ITWeb as to why customers were not directly informed of the rate increases but says the new tariffs have been published on its Web site. To view the new full rates table, users need to click on the international tab on the Web site and select all, or search each country individually. The old rate is, however, not indicated.

By ITWeb's calculations, standard calls to a number of African countries will cost a lot more under the new tariffs. Calling Burundi will now cost R10.99 per minute compared to the old price of R6.99, a 57% increase. Calls to Zambia will cost between 57% and 33% more depending on which network is called, while calls to Guinea, Guinea Bissau, Senegal and Bosnia will cost over 40% more.

"MTN reassesses its retail international calling rates from time to time," says Graham de Vries, chief corporate services executive at MTN SA.

"A variety of factors are taken into consideration, such as any increases in the termination costs imposed on MTN to terminate voice traffic on international destinations, as well as external factors such as the recent decline in foreign currency exchange rates."

De Vries says there are more than 1 300 international calling parties and destinations where voice calls can be terminated from the MTN network.

"The reassessment led to MTN making changes to the international retail tariffs. MTN not only increased the international calling tariffs for some destinations but we also decreased tariffs for other destinations."

MTN says it lodged a price notification with the Independent Communications Authority of SA for the revision of international calling tariffs for all MTN price plans prior to the changes becoming effective.

De Vries says the rates increase is in compliance with the Consumer Protection Act and is explained in MTN International Calling Subscription Terms and Conditions clause 4.7 that reads: "MTN reserves the right to, in its sole and absolute discretion, amend the rates and/or countries listed on the *link referred to in clause 4.2 above, by removing or adding countries or increasing or decreasing the standard rate or the MTN International Calling Subscriptions rate. Visit www.mtn.co.za regularly for notices, updates and/or changes to services."

* The link referred to is: https://www.mtn.co.za/everyday_services/RoamingInternational/Pages/MakingInternationalCalls.aspx

MTN International call rate changes

Country

Old rate

New rate

Difference

Percentage increase

Burundi

R6.99

R10.99

R4.00

57%

Zambia (Airtel)

R6.99

R10.99

R4.00

57%

Zambia (MTN)

R5.99

R7.99

R2.00

33%

Guinea Republic

R6.29

R8.99

R2.70

43%

Guinea Bissau (All except Orange)

R6.29

R8.99

R2.70

43%

Guinea Bissau (Orange)

R6.99

R9.99

R3.00

43%

Senegal

R4.99

R6.99

R2.00

40%

Bosnia and Herzegovina (Mobile)

R4.99

R6.99

R2.00

40%

* The data in the table above was provided to ITWeb by a local service provider, which did not wish to be named. MTN could not provide ITWeb with the relevant data for old rates by the time of publication. Please note this is only a sample of some rate changes not a complete list of destinations affected.

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