Tuesday, 9 February 2016

PUBLIC COMMENTS IN RESPECT OF MTC’S NEW NETMAN PRODUCTS (NETMAN TURBOBOOST) TARIFFS

PUBLIC COMMENTS IN RESPECT OF MTC’S NEW NETMAN PRODUCTS (NETMAN TURBOBOOST) TARIFFS AS PUBLISHED ON 24 DECEMBER 2015 IN THE GOVERNMENT GAZETTE NO. 5908 GENERAL NOTICE 568

Allow me to first state that it is becoming increasingly difficult for consumers to be involved in the process of tariff determinations and other matters before CRAN as there are no consumer organization receiving funds to assist them in doing work on behalf of the consumer. Most consumer activists are doing the work on behalf of consumers only when the time allows and thus we will find that big corporations will increasingly get away with unfair business practices. Perhaps CRAN should consider the idea of using funds from the Universal Service Fund to assist consumer organisations with their activities.

The Namibia Consumer Protection Group (NCPG) requests CRAN to have public hearings on MTC’S new NETMAN products (NETMAN Turboboost) tariffs as published on 24 December 2015 in the Government Gazette NO. 5908 General Notice 568.

The proposed tariffs are discriminatory in nature and unfairly penalise the lowest income earners and will make the data usage eight times more expensive than for the data charged to the high-end market user.


COMPARISON OF PRODUCTS

  • MTC proposes to charge the lowest cost package at N$ 179 per month for 2 gigabyte of data. That means a cost of N$ 89.50 per gigabyte. 
  • The top-end "Unlimited" package costs N$ 999 per month for 90 gigabyte of data. That means a cost of N$ 11.10 per gigabyte.
Data costs are sold at a profit, so assuming the N$ 11.10 per gigabyte is already making a profit, why is MTC making an additional N$ 78.40 per gigabyte off the lowest income earners?

See graph for comparisons of all packages.



The NCPG would like to see this issue being discussed with as many consumers as possible and would request CRAN to allow public debate on the matter.


I thank CRAN for allowing us this extension on comments in this matter.

Kind regards


Milton Louw
Executive Director
NAMIBIA CONSUMER PROTECTION GROUP

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