Telecommunication Company Airtel has reduced the rates of calling from kampala to India and China to 3 shillings. This amount which is the same as the local call rates targets the business community that mainly depends on the two countries for trade.
Airtel’s move comes in the midst of local price war that has seen tight competition in the telecommunication industry in Uganda.
Even as Telecommunication companies are now sailing on the same call rate of 3 shillings per unit across all networks they have not stopped thinking of how to expand their subscription. Airtel Uganda has broken further into the competition by introducing a 3 shillings charge on all calls from Uganda to India and China from a rate of between 290 and 300 shillings.
Trade between Uganda and China stands at over 800 billion shillings annually and therefore, Airtel’s low call rates to these countries may be a ploy to attract the loyalty of the people at the base of the business pyramid, who have small but consistent income.
Although this move is a threat to Airtel’s revenue the company says that it is working on a long term strategy that entails reduction of call rates to increase subscription attaining loyalty and later enjoying profits in the long term.