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Mozambique mobile tariffs under pressure

JOHANNESBURG, South Africa-The Mozambique Transport and Communications Minister Tomas Salomao has lashed out at claims that the government is placing pressure on the publicly owned telecommunications company, TDM, and its mobile phone-subsidiary, M-Cel, to double their tariffs.

The statement comes after South African mobile network operator Vodacom, which won the second mobile license in 2002, said that it would not enter the Mozambican market until its competitors increased their tariffs. Vodacom needs to recover the US$15 million license fee within a time frame that it regards as tight.

The alleged increase requested would put the price of a unit of three minutes at roughly 6,000 meticals (US$0.25), double the current M-Cel tariff.

The minister, however, confirmed that negotiations are under way between Vodacom, M-Cel and the regulator, the Mozambican National Communications Institute (INCM) to settle on an equitable interconnection agreement.

Joao Jorge, the director of INCM said the regulator would not normally participate in such negotiations but they were called in when the parties concerned were deadlocked.

“The operators tell us they are going to meet, and then inform us about their understandings or failures to reach an understanding.”

Andrew Mthembu, deputy chief executive of Vodacom, described the M-Cel tariffs as ridiculously low and said they should be increased accordingly.

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