BOTSWANA’S BTC REBALANCES TARIFFS, UPPING LOCAL COSTS

Telecoms

Botswana Telecommunication Corporation has increased tariffs for local calls, installation and post paid telephone services with effect from 1st October. Addressing a news conference las Friday about tariff re-balancing, BTC Head of Marketing Naledi Dikgomo-Goulden said the corporation took this measure to position Botswana for the information age by meeting the challenges in delivering its promise on value for money, quality and service.

The charge for business line installation will increase by P112.50 and the rental would increased by P9.50 while charges for the residential line installation and rental would increase by P5 and P4.80 respectively, she said. Dikgomo-Goulden said this shows an increase of 2 percent (P3.06 per month) for an average residential customer, adding that "this is the first tariff re-balancing in four years and it’s a step forward to align cost charges to cost of providing service.

"We have already reduced costs by 10 percent on long distance calls in July and there is need to bring long distance prices in line for regions hence correcting local calls.

BTC Chief Executive Officer Noel Herrity said the BTC operating cost has reduced by P82 million and the benefit of transformation is now evident in terms of financial resources of this year. He said government assisted BTC by way of loan conversion of P193 million and a new loan of P300 million for network investments. Herrity said BTC had a net loss of P39 million and has increased provisions for retrenchment costs to P84 million.

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