Celtel Nigeria Charges Flat Tariff Across Networks

2007-03-26 19:00:00 | Viewed 2007 times

Celtel Nigeria has taken a bold step aimed at eliminating tariff discrimination in Nigeria by launching a new tariff plan called Flat Unity Tariffs plan that eliminates price discrimination across networks by providing the same rates across all networks in the country. Launching the new tariff plan in Lagos yesterday, the CEO of Celtel, Mr Bayo Ligali stated that the new tariff plan eliminates the prospect of subscribers moving from one network to another. According to him, "subscribers do not have to go from one network to another, with Celtel you can have a good and compatible rate across all networks". He stated.

The FLAT "unity Tariffs" reduce tariffs to as low as 33k per second, and come in three different plans: One, a "Simply Special" plan targeting the youth and the average consumers,two, the "Simply Smooth" plan targeting professionals and heavy users and lastly the "Simply Smart" plan for SME's and ultra heavy users

According to Ligali, "Celtel customers can call for the same low rate of 33k/sec to all networks. We are One Nigeria, and it's important our subscribers do not experience price discrimination based on which network they call" He stressed.

Noting that telecommunications has become a uniting factor in the lives of Nigerians, since the liberalization of the sector by the Federal Government, Ligali noted that this was not the case less than ten years ago.He reiterated that it was a welcome development that liberalization has enabled more Nigerians to have access to communications especially in the rural areas. He assured Nigerians that the new tariff plan was transparent, with no hidden cost and further stated that Celtel will not increase tariffs, because its not interested in increasing its rates but in enabling more Nigerians to have access to its networks. Thisday gathered that the unveiling of the unity plan is a move by Celtel to consolidate on recent gains its made in the sector and is targeted at making it one of the fastest networks in the nation.

Mr Ligali reiterated that the FLAT tariff plan is the first ever in Nigeria and is in tandem with Celtel's promise to make life better.

According to him, what obtains in Nigeria at present is that consumers have to choose from a multitude of pricing plans on other networks, which is eliminated by offering customers affordability, simplicity, and greater transparency when choosing plans. Other tariffs in the plan include a new international calls rate, which lowers prices by 45% and reduces calling cost to as low as 55k per second for popular destinations like UK, US, UAE, amongst others, and for popular African destinations like South Africa, Ghana, Togo, Cameroon, and Benin. Others are the introduction of very low rates for late night calls, as well as 15 free SMS per month.

Ligali also commented on the issue of price war. He stated that Celtel was not interested in a price war. He added that from time to time, Celtel will review its its prices because it wants to give the consumers affordable quality services. The Company is not given to a price war,but is interested in giving to customers what it thinks the customer can afford. He added that other networks did their own six months ago , but Celtel did not join because it knew what it was doing. He disclosed that Celtel from September to now has rolled out 80 base stations per month. Celtel's target according to him is to ensure that 95%of the nation is covered before the end of the year.

On the award of the 3G license to Celtel and fears that Celtel will pass on the high cost of the license to subscribers, Ligali stated that market forces will determine the price of 3G services. He added that "if I want to pass off cost of procuring the license on customers and the customers don't agree,I can't force it on the customers, market forces at the end of the day is what will determine the price of 3G services"He stated.

Celtel is one of the four successful operators including Glo, MTN and Alheari Engineering Ltd that got the licenses for $150 million.

Mr Ligali added that the development of 3G by Celtel will be initially targeted at segments that initially require the services before increasing to other segments. According to him, those who need 3G facilities will get it and those who need the current 2G facilities will have it as well. He also added that Celtel will continue with its rural expansion plans in spite of the procurement of its 3G license.

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