Swazi Network Struggles Against Currency Problems

The Swaziland GSM network, Swazi MTN has said that despite the continuing weakness of the local currency, the Lilangeni against the US dollar, the company still plans to expand its network over the year. As reported, the weakness of the Lilangeni against the US Dollar has had serious repercussions on the mobile industry as it has on the economy as a whole.

The majority of mobile equipment, infrastructure and systems are provided from abroad and are dollar-based, while revenue is in Lilangeni. Swazi MTN says that this has necessitated rationalisation within the company to ensure that efficiency and cost effectiveness are not compromised.

However, Swazi MTN will be installing more than 50 rural mobile payphones in coming months and the number of Swazi MTN distributors increased from 157 to well over 200. Incentive programmes to ensure the best possible service to subscribers by service centres are being initiated, which will ensure added benefits to cell-phone users. The company has managed to hold the connection charges, although there will be below inflation rate increases in the PrePay tariffs. The PostPaid tariffs will be reduced, but due to the size of the PrePay market in Swaziland, there will be an overall rise in tariff revenues.'"

Posted to the site on 20th May 2002