South Sudan’s leading telecom providers, MTN, Digitel, and Zain, have jointly announced an impending increase in tariffs for their services. This decision, driven by the Central Bank’s recent adjustment of the foreign exchange rate, aims to align telecom pricing with the prevailing economic realities in the country.
The National Communications Authority (NCA) and the Bank of South Sudan (BOSS) have approved this tariff adjustment, recognising the need for telecom operators to maintain financial viability in the face of currency fluctuations. The increase will be implemented in three phases, starting on October 18th, 2024, with subsequent adjustments on November 18th and December 18th, 2024.
“This adjustment follows a thorough analysis of its potential impact on customers and the telecommunications sector,” the operators stated in a joint press release. “Henceforth, telecommunications service prices will align with the BOSS’s official exchange rate.”
This move comes at a time when South Sudan is grappling with economic challenges, including high inflation and currency devaluation. The telecom sector, a crucial driver of economic growth and social development, is not immune to these pressures. By adjusting tariffs, the operators aim to ensure the sustainability of their operations and maintain the quality of their services.
While the tariff increase is necessary to maintain the financial health of the telecom sector, it is likely to impact consumers, particularly those in low-income brackets. Access to affordable communication services is crucial for social inclusion and economic participation, and any price increase could potentially exacerbate existing inequalities.
However, the operators have emphasized their commitment to promoting inclusivity and driving digital transformation across the country through ongoing network investments. They aim to balance the need for financial sustainability with the goal of providing accessible and affordable services to all South Sudanese.
This is not the first time that South Sudan’s telecom operators have faced challenges related to economic conditions and regulatory changes. In 2016, the operators implemented a similar tariff adjustment in response to a currency devaluation. The NCA has also played a role in regulating tariffs and promoting competition in the telecom sector.
Despite these challenges, the telecom sector in South Sudan has demonstrated resilience and continues to play a vital role in connecting communities and driving economic growth. The operators’ commitment to ongoing network investments and digital transformation is crucial for ensuring that South Sudan keeps pace with the evolving global digital landscape.
The phased tariff increase announced by MTN, Digitel, and Zain reflects the ongoing economic challenges faced by South Sudan. While the impact on consumers remains a concern, the operators’ commitment to maintaining service quality and promoting digital inclusion is crucial for ensuring that all South Sudanese have access to essential communication services. The collaboration between the NCA, BOSS, and the telecom operators will be vital in navigating these challenges and ensuring the sustainable development of the telecom sector in South Sudan.
