MTN scandal prompts tight monitoring mechanism
By Edwin Mbulo in Livingstone
Thu 26 Apr. 2012, 08:20 CAT
THE Competition and Consumer Protection Commission (CCPC) has decided to tighten its monitoring mechanism after the arrest of an MTN Zambia IT specialist who allegedly manipulated the system to make his girlfriend win K1 billion as grand prize money.
CCPC public relations officer Vaida Bunda said in a statement yesterday that the Commission's executive director Chilufya Sampa was saddened that despite numerous strides made to urge business houses to consider consumers first, most firms still had loopholes in their systems which make it easy for consumers to lose out.
"The Commission has noted with regret that there appears to be loopholes in some of these competitions that are being run in the country. We have therefore decided that the best possible way of curtailing some of the loopholes is by having compliance programmes with such companies where the Commission will have to go through the operations of the competition before it starts running" stated the CCPC.
The CCPC further stated that in future, it shall require all companies running competitions to submit the rules, conditions and operations of the specific competitions before making them public to ensure that consumers were adequately protected from unfair practices.
"The CCPC has noted that while most of these competitions are initiated in good faith, business houses should always go a step further to ensure that all monitoring mechanisms are in place and if possible employees that are directly involved are cautioned and made to sign agreements," it stated.
"The Commission would also like to urge the general public to refrain from engaging in activities that might jeopardise other people's chances of genuinely winning competitions."
And Anti Corruption Commission spokesperson Timothy Moono said the MTN Zambia Let's Go BEEG promotion K1 billion prize money fraud raised suspicions.
He said the manner in which some promotions were done lacked transparency and accountability.
"Some promotions, they indeed raise some questions. People want to know how they are done. In the interest of accountability and transparency they should be a way for the public to know how it (promotion) is being done. Implications are that people become scared to participate in promotions and will be very reserved because they don't want to lose their money," Moono said.
Jones Ilukena an IT specialist at MTN has been arrested for allegedly manipulating the system to make Namuchana Sinuma of Livingstone win the "Let's Go BEEG" K1 billion prize money.
MTN has since offered to re-run the draw.
Labels: FRAUD, MTN
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MTN to invest 25% of profits into network
By Chiwoyu Sinyangwe
Mon 01 Feb. 2010, 04:01 CAT
MTN Zambia this year plans to invest 25 per cent of its turnover to grow its network which last year accounted for 55 per cent of the total domestic mobile growth, chief marketing officer Ernst Fonterne has said.
MTN Zambia is targeting providing lower high quality calls to its clients, roll out advanced mobile internet connectivity through 3rd generation technology and also targets to cover the remaining six unconnected districts in the country.
Last week, MTN Zambia, whose subscriber base last year hit one million, launched MTN Zone, a tariff option that allowed its subscribers to make calls at discounted rates depending on the area and time of the day.
The discounts on calls range from 10 per cent to 100 per cent.
In an interview after the launch of the MTN Zone, Fonterne said MTN Zambia in the first quarter of this year planned to consolidate its gains last year, leveraging on its lower tariffs and the 2010 FIFA World Cup which is expected to enhance the brand of Africa's largest mobile phone provider.
"We are looking at increasing our points of presence in Zambia to give more accessibility of our network to the Zambian market - beginning last year, our points of distribution grew from 4, 000 to the current 11, 000 points of presence."
Fonterne said MTN Zambia's growth prospects for this year would be anchored on the achievement of last year as well as rolling out advanced mobile internet connectivity via 3rd generation technology.
He, however, declined to give the specific growth targets for this year as doing that would abrogate MTN Group's listing rules on Johannesburg Stock Exchange because the company was currently in closed period.
Fonterne said MTN Zambia would in the first half of this year rollout 3rd generation technology through lowering connectivity costs.
Fonterne said MTN Zambia would lower the cost of the data card from the K750, 000 to K800, 000 to about 50 per cent as a way of enhancing rolling out 3rd generation technology through provision of Internet connectivity of 7.2 megabits per second.
Labels: ITC, MTN, REINVESTMENT
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MTN to continue expansion projects
Written by Kabanda Chulu
Tuesday, August 25, 2009 3:25:13 PM
MTN Zambia chief sales and distribution officer Collin Muyanjahas said the company will continue its expansion projects since Zambia’s mobile telecommunication subsector has the potential for growth.
Announcing the company’s attainment of one million subscribers, Muyanja said MTN Zambia was on the road to becoming the country’s most preferred network. He said the Zambian mobile telecommunications market was dynamic with many opportunities for growth.
“We look forward to penetrate this market and strengthen our position as the market leader and we are the fastest growing network because three years ago we had 200, 000 subscribers but now we have over one million people using our network,” Muyanja said. “And we shall continue expanding since we believe there is still room for growth in this market and very soon, we shall roll out various products that will be tailor-made and suitable for our customers.”
He said MTN Zambia would continue holding consultative forums with distributors and dealers across the country to strengthen the company’s position on the Zambian market.
“Last Friday in Lusaka, we had such a meeting and we shall be hosting forums of that nature across the country because we understand that dealers and distributors are behind our fastest growth in this market,” said Muyanja. “And to strengthen our position, we need to be discussing strategies and sharing ideas and experiences on how to move forward especially that we are the official mobile telecommunications service provider for the 2010 FIFA World Cup to be staged in South Africa.”
Labels: ITC, MTN
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‘Zain, MTN shouldn’t participate in Zamtel shares purchase’
Written by Chiwoyu Sinyangwe
Tuesday, August 18, 2009 2:51:53 PM
ZAIN Zambia Plc and MTN Zambia should not participate in the purchase of 75 per cent Zamtel shares to allow the entry of another company, Zambia Competition Commission (ZCC) stated yesterday. Commenting on the pending sale of three quarters of the country’s biggest Information Communication Technology (ICT) company, ZCC stated that the entry of a new player would enhance competition in Zambia’s telecommunication sector.
ZCC stated that it supported the partial privatisation of Zamtel, observing that the move was expected to enhance efficiency and effective competition in the telecommunication industry.
“We envisage enhanced competition in the telecommunications sector should we have a new entry through the partial privatisation,” ZCC director for Consumer and Public Relations, Brian Lingela was quoted in the official press statement.
“We would like to see another independent company other than MTN or Zain take over the assets of Zamtel as this will greatly increase competition in the telecommunication sector.”
And ZCC stated that state owned companies in a fast changing telecommunication sector would always offer little competition because they were protected by government and received subsidies, conditions that did not foster a competitive spirit in the management of such companies.
“ZCC also expects that once Zamtel operates as a competitive business, it is likely to result into lower tariffs for consumers and increased coverage particularly for Cell Z subscribers,” ZCC stated.
“Over the past few years, for example, Cell Z, a Zamtel subsidiary has remained a ‘sleeping giant’ and has not been aggressive in expanding its coverage to most rural and urban areas. This situation has provided insignificant competition to other providers such as Zain and MTN. In its current state, the company would have to exit the telecommunication market if it operated within a competitive environment to the detriment of consumers.”
ZCC also urged the government to revise laws governing the telecommunication sector in order to ensure that all companies operating in the sector were placed on an equal footing for effective competition to occur.
Labels: COMPETITION, MTN, PRIVATISATION, ZAMTEL, ZCC
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Global financial crisis hasn’t spared us, says MTN chief
Written by Fridah Zinyama
Tuesday, March 17, 2009 2:35:23 PM
MTN Zambia Limited chief executive officer Per Christer Eriksson has said the global financial crisis has not spared the mobile industry, as people have reduced their spending on airtime.
And MTN Zambia Ltd chief sales and marketing manager Fred Mokoena said his company has come up with a promotion meant to help increase the call duration of its subscribers.
During the launch of the MTN ‘Talk4Mahala’ promotion at Southern Sun Ridgeway hotel in Lusaka yesterday, Eriksson said the global financial crisis had affected his company like other industries and hence the decision to put in place measures that would increase the subscriber’s chances of making calls.
“There is competition for the money in people’s pockets in the mobile industry,” he said.
Eriksson said apart from the credit crunch, the depreciation of the local currency had also affected the company’s operation costs as they had to spend more on importing equipment into the country.
“Our investment costs are going up but this is not correlating with an increase in tariffs,” he said.
Eriksson however added that despite the challenges the company was experiencing, it had no intentions of downsizing its workforce.
“We are on a growth path as a company and cutting down jobs is not an option for us,” said Eriksson.
And Mokoena said the MTN ‘Talk4Mahala’ promotion was meant to encourage subscribers to talk for a longer period than was currently happening.
“All our clients have to do is talk for 90 seconds and then the next 15 minutes are free,” he said. “This promotion is meant to benefit our clients who are on the pre-paid system but our post paid clients are also free to change to the pre-paid system if they want to enjoy the benefits.”
Mokoena said over the past few months, call duration had significantly reduced and MTN had devised ways of encouraging its clients to speak more whilst spending less money.
Labels: FRED MOKOENA, GREAT DEPRESSION II, ITC, MTN, PER CHRISTER ERIKSSON
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MTN discontinues pay phone programme
Written by Chiwoyu Sinyangwe
Friday, January 30, 2009 3:11:23 AM
MTN Zambia, the pioneers of public pay phone services in the country, has discontinued the pay phone programme. According to latest data from the Communications Authority Zambia (CAZ), MTN Zambia has not renewed its licence to be public pay phone service provider, which was being done through the Jembi phone.
And CAZ has licensed 19 companies in the country to provide Internet Services in the country.
The licensed internet service providers included Coppernet Solutions Limited, Africonnect, Postlink Zambia, PRONET Online, Zamnet Communications System, Realtime Zambia Limited, Microlink Technologies, MTN Zambia Limited, Quick Edge Limited, Zain Zambia and Bring.Com Zambia Limited.
The rest were UUNet Zambia, Epochal Zambia, Pronet Africa, iBurst Zambia Limited, Comium Data Limited, Foris Telecom, Morse Communications and Zamtel online.
Labels: CAZ, ITC, MTN
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