Sunday, November 17, 2024

ZACCI urges government to allow a 4th mobile phone service operator in Zambia

Share

A man searching for cell phone network signal up a tree

AMBIA Association of Chambers of Commerce and Industry (ZACCI) and Zambia Consumer Association (ZACA) have joined other calls for government to reverse the law restricting entry of the fourth mobile phone service operator.

ZACCI president Geoffrey Sakulanda says the larger the number of players on the market the better because this help costs go down and consumers to benefit.

“ZACCI supports Government efforts to liberalise the economy, when we have more players in the industry doing business becomes cheaper although we should see to it that these providers do not form cartels,” he said.

Mr Sakulanda said that even as the new players are entering the market issues of better and improved services should not to be over looked. And ZACA executive director Muyunda Ililonga said the restriction of the entry of more mobile phone service providers was anti-competitive. He said if the government reverses the statutory instrument to make the mobile sector more competitive, the consumers will have a wide choice and not be limited to a particular operator.

Mr Ililonga said the introduction of the fourth mobile provider is good for the consumer’s welfare adding that it will reduce the cost of the products.

The government should remove all barriers and fully liberalise the sector so that the consumer’s welfare is not undermined.

Government through the Ministry of Communication and Transport issued Statutory Instrument No. 111 of 2009 that has prevented entry into the fixed telephone and mobile communication networks markets up to 2014.

The reason Government gave was that allowing unrestricted entry into the mobile market will result into the market having more market players fighting for a few subscribers which might eventually force others to exit the market due to unattractive profit margins despite prior substantial investment in their mobile network operations.

Government noted that in this regards, for another entry to occur into the market, Zambia is supposed to attain a certain level in both subscription and potential which will warrant continued profitability of all market players.
[Zambia Daily Mail]

10 COMMENTS

  1. HAHAHAHAHAHA…GOVT REASONING…(if there is unrestricted entry into the mkt others will exit with a maximum lose on their investment)!! bullshit….IF THEY ARE NOT STRONG, LET THEM EXIT…WE NEED THE MARKET FORCES TO BE DETERMINING THE PRICES AND NOT MONOPOLIES OR OLIGOPOLIES….open the mkt to the providers and let the zedians reap the benefits of cheap calls.

  2. apparently these a new Zambian commercial airline to launch soon which is sourcing for pilots and captains too. Dont kubeba*shhhhh*

  3. I prayer this call is heard. The existing networks has monopolized the industry so much. Just imagine local calls are expensive as international calls in some countries. Look at countries that have a number of networks, how local calls are cheap. Pa Zed no it is too much something must be done. I cry that they should not allow a 4th even the 5th, 6th as many as the market can sustain. whoever is making this call please push hard. 

  4. Good news, at least we will a more established  network provider with a proved track record like Vodafone, Orange etc enter the market not these make-shift providers.The government also should thrive to improve facilities and infrastructure!!! 

  5. Good move by ZACCI, at least we will see a more established  network provider with a proved track record like Vodafone, Orange etc enter the market not these make-shift providers ripping off consumers.The government also should thrive to improve facilities and infrastructure!!! 

  6. That was the stupid reasoning of mmd. They had no heart for the Zambians. Pf let more players come in. Anyone that does not want competition like HH and his minions must pack their bags and go to hell.WHO ARE THEY? Thugs!

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading