Malawi phone operators want tariff controls out

Telephone operators have expressed concern over a law which gives powers to government to control tariffs, saying this was
retrogressive.

Association of Telecommunication Operators Ltd president Charles Kamoto  said this when the association members appeared by parliament’s Media Committee.

The Communications Act gives powers to Macra to control tariffs.

Kamoto  defended the high tariff rates, saying this was just a perception—arguing the prices are far much lower forcing the
operators make marginal profits.

“Our prices are far much lower, we just make marginal profits. The effective rates only just cover costs including a reasonable return on
capital employed, there is no evidence of excessive profits,” said Kamoto.

However, Kamoto conceded internet rates remains high in the country, saying this is the case in land-locked countries.

“The cost of internet delivery in Malawi is very high because we are a land-locked country. The fibre internet delivery is cheap but in
Malawi it is expensive because of the distance from the sea,” he said.

Kamoto was therefore skeptical that tariffs are controlled by Macra.

Vice chairman of the committee Godfrey Munkhondia said they summoned the telephone operators as a follow up following the passing of the Communications Act a few years ago.

“This is the first time we are interacting with stakeholders after the passing of the Act. It does not make sense to have an Act which cannot be implemented on the ground,” said Munkhondia.

He said the committee would continue with such interaction sessions for the improvement of the telecommunication industry.