BUSINESS WORLD Irrational or Rational Price Hike By Cell Phones Operators in Sierra Leone? Posted by on Apr 6, 2009, 08:23

Celtel now Zain Top Up Cards Seller in Sierra Leone...Cell Phone Operators Exploit The Masses

Last week, mobile phone users were taken aback as a result of the unannounced increase in tariffs by the GSM companies, excluding TIGO that maintained its original price. It is not that TIGO is the “good boy” or the “Judas” in the mobile phone business, but a clear show of concern for this economically strapped country.

Secondly, it would appear that TIGO was not consulted in the conspiracy work and therefore decided to take a back seat and watch whether or not others would succeed. Perhaps, if the Shylocks had succeeded, TIGO would have joined later to add further economic burden on the users of mobile phones. We must appreciate the prompt intervention of the regulatory body-NATCOM for putting a hold and instructing the Shylocks to revert to the old price until the economy is further improved. There has been several discussions, agreements and disagreements among the users and retailers since the unilateral increase was made without any regard for NATCOM and even the public, which prompted NATCOM to issue out a press release, not only condemning the action but with threat of a severe consequence if the companies refuse to comply.

Some people are arguing that the increase was rational, while others are saying that it was irrational to increase tariffs at this time. In any business, the decision to change the rules of the game is entirely the affairs of the owners, managers, partners or the executives when it is discovered that the business is not making profit and there is potential for total collapse. Research and other investigations could have been done to determine why the business is taking a nose-dive. There are moments when mass redundancy is used, with skeletal staff left to steer the business ship until sanity returns. Other measures can be adopted too to keep business floating. The recent increase has been snubbed by the regulatory body for a number of reasons, which probably included no justification at this time.

In the past Celtel, now Zain has been winning arguments of poor electricity supply to maintain constant flows of signals, providing good working conditions, salaries, allowances and other facilities and benefits for staffs. This was when the local staffs outweighed the so-called foreign experts and Premiere Consultancy, the outfit doing its Public Relations job by then, was able to manage the affairs better than now, using different Public Relations strategies to convince the minds and even the SLPP government. Ex-President Kabbah was skillfully brought in and became an unpaid Public Relations officer. He made several appearances in most parts of the country, selling Celtel to the people. There were times when ex-president Kabbah was called upon to launch the products in some of the most remote part of Sierra Leone, Kailahun, Pujehun you name them, while Dr. Julius Spencer and his team is hardly seen in Freetown always in the provincial towns and suburbs.

Justifications of increases in tariffs were accepted hook, line and sinker, especially when the issue of Sierra Leoneans was mentioned. Those days have gone when electricity, better conditions of service were used as the weapon to squeeze the people. Though, there is no constant electricity flow, however, Haja Afsatu Kabbah must be commended for the intermittent supply of power that is giving some form of income to cold water seller, wielders, panel beaters and even the mobile phone companies. Their generators are not subjected to 24-hour work without rest. The financial crisis is not hitting only mobile companies in the country, even Sierra Leoneans whose relatives and friends are working in foreign countries and topping their-day-to day survival is becoming slim and slimmer by the tick of the clock, because of the insufficient hours they are asked to work and sometimes sent back home. The situation is becoming unpredictable and severe everyday in places like America, United Kingdom, and Europe.

In the case of Celtel now Zain, there is something major affecting the business, which its marketing department should have been able to discover since the company changed hands to date. The name Celtel was appreciated and welcome than the new name-Zain. This could be a subjective view that can attract debates among those who studied marketing. Change of name has always been a major criterion in business, especially when the new name is not captivating. Colour is also an important factor which should not be ignored. Let’s compare the former name to the present and their colours. Though the issue here is not about name and colour, but the irrational or rational increase made by the three companies which Sierra Leoneans in agreement with NATCOM have snubbed, saying enough is enough, this time round laws should be respected and the rights of the users be protected and not thrown into the dustbin.

NATCOM has played the role of a regulatory body and not a supervisor, which it should be commended for by all assessment and estimation. It made its position clear and pointed out to the companies that consultations should have been done and the right atmosphere prevailed for any kind of increase to take place. It is not that NATCOM is against increase, what it is saying should be understood and comprehended by the GSM companies. It is aware of the over head costs and other expenditures incurred on a daily business day.