After the Ugandan Communication Commission (UCC) apparently reversed a decision in June to stop more price cuts, mobile operators in the country are continuing to lower prices, leaving the country in the midst of another price war. Warid Telecom and Uganda Telecom have already cut prices and launched a number of new promotions aimed at attracting customers. According to TeleGeography statistics, Warid charges some UGX60 per minute for calles within its network and UGX180 per minute to other networks, having reduced the price from UGX480 to UGX300 and then to its current rate. Analysts are worried that if the continued price cuts continue many of the country's mobile operators will be in danger of losing their already slim profit margins in the coming months. “It is definitely something to look at closely because by continuing to reduce prices this could really adversely affect the overall ability of operators to function and provide a long-term base for profits,” said one telecom analyst on the sidelines of a small IT meeting in Kampala. According to local reports, the UCC released plans for a directive that would put a price limit on interconnection rates and a 90-day limit on promotions between each individual promotion. TeleGeography, a leader in telecom analysis in East Africa, said the proposal is “intended to stabilize the highly competitive sector and simplify rates for customers struggling to keep track of the ever-changing prices and promotions.” BM
