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Warid Telecom offers Uganda free talk time past two minutes

By Edris Kisambira , IDG News Service , 05/09/2008

Following the launch of its commercial operations in March, Warid Telecom is aggressively wooing customers with attractive calling platforms and huge advertising spend in the media.

Last week, Warid introduced a calling platform that allows customers calling within its network to talk free past the two-minute mark.

While existing players have in the past introduced calling platforms to lure users to their side, the market was yet to see any of the players make a move as bold as this one.

In Uganda's highly competitive mobile-telephone sector, the battle for numbers (clients) is a bruising one, especially for new players coming into a market that, according to many, seems to be saturated.

Uganda's three preeminent telecom companies (MTN, Celtel and Uganda Telecom) have a combined subscriber base of 4.5 million people. At the end of a five-year duopoly period, which was enjoyed by MTN and Uganda Telecom, the sector was opened to bring in new competition.

One such player is Warid, an Abu Dhabi-based company, which has so far invested some $250 million in its Uganda operation. The bulk of that investment has gone into infrastructure rollout.

In the past, players offered platforms that allowed customers to call at half the normal cost -- especially at off-peak hours -- or even offered a free call at off-peak hours. Off-peak hours in industry jargon refer to the time of the day (between midnight and 6 a.m.) when there is little activity on the telephone networks.

"Effective this month, the first two minutes of a phone call will be chargeable and the rest will be free," Zul Javaid, Warid's country general manager, told reporters at the launch.

"That means that if you are talking to somebody for three minutes, you are only charged for two minutes. Even if you talked for five minutes to two hours, you will be charged for only two minutes."

The move by Warid is an indication of the level of competition in Uganda's mobile-telephone industry.

"This is the first time anybody has done it throughout the day, any time of the day and any time of the week," Javaid said. "There is no limitation, as long as the call is Warid to Warid."

While the offer will be available to subscribers for the month of May, it is a clear indication that in the mobile-telephone business, it is the numbers that matter at the end of the day.

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