Wednesday, December 01, 2010

Falling prices for phone calls and internet

Very exciting how competition improved service and pricing in telecommunication in Nigeria.
Who's switching to Airtel?
BusinessDay reports that "In the coming weeks, Nigeria’s highly competitive telecommunications market will witness sweeping squeeze in call-rate prices following Airtel Nigeria’s move to crash prices of mobile phone talk-time to as low as N9 per minute from the current industry rate averaging N35 to N42 per minute across networks...

Analysts view Airtel’s move as strategic for market share as it intends to invite new subscribers on to its network and wrestle existing ones from competing networks. This, of course, will boost revenue in the long run as Airtel will enjoy better economies of scale through reduced cost per unit of delivering services as volume increases.

[meanwhile] The internet download price slash has forced prices down to as low as N3,000 from N10,000 in less than three months with MTN leading the slash race. Industry experts believe the price will in no time drop to levels comparable to UK charges which is currently about N1,250 or 5 UK pounds sterling

On the other hand,
I wonder how much competition is planned in Nigeria Electric Power: not as much as one would like. Instead we have excuses about how inefficient it would be to duplicate distribution and transmission systems. This means that while there might be multiple players in power generation, we would try again and see if a government transmission company would replenish its infrastructure and give reasonable performance. No way. If we want decent electric power, we must duplicate first, harmonize later. It may seem wrong, but it's going to be right.

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