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In this report Okechukwu Kanu examines the costs of making GSM calls and draws conclusions on when the prepaid subscriber will begin to benefit from falling costs:
Tariffs at the commercial phone centres crashed fast and hard once the battle for the nerve of this lucrative portion of business began in earnest in 2004. For almost three years MTN's Boostercard had reigned supreme. Having created the market it became its sole beneficiary. However, once Bumpa Card for Vmobile and ProfitMax for Glo Mobile fully came on stream MTN's Boostercard had to fight doggedly to maintain its stranglehold on the market. The result has been continuous tariff reductions and innovations in that market.
http://www.thisdayonline.com/nview.php?id=7389 (Thisday Registration)
http://allafrica.com/stories/200501200149.html
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What I feel for those of us who are not on Bumpa/Booster or whatever u call it, is this, I think we are paying for receiving.
The tariff is too high for individual using per second tariff. 80k p/s amount to N48.
The cost is too high. Nigerian clamour for reduction in GSM tariff. Even it pays to call in those biz centre than using your phone.
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Well, from what I know and what I do, it is cheaper to make your calls at Call Centres now. People using cellphones only recharge their phones for those emergency calls when they cannot afford to wait or when a Call Centre is far away.
For example if u know that a call is going to take u 3 or more mniutes, then the best thing is to go to a Call Centre otherwise u spend 300% of that same amount making the call on your phone.
Even though Operators immediately switched to VMobile Booster which enabled them to charge N15 for calls, most times, it is difficult to get a call through as a result of the network problem VMobile has been known for. I know some Call Centers that have reverted back to MTN boosters now, thereby charging the N20 they have been charging previously, because of less newtork problems.
The bottomline of the whole thing is that it is we that are not on booster cards that are bearing the brunt of the high call tariff.
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