Telecoms should start shifting the business model from minutes to bytes


The Uganda telecom industry has seen price wars on voice leading to reduction in Average Revenue per User. As this price competition threatened, the telecoms core cash cow, many are searching for services that could replace reducing revenues through voice calls. Data and Mobile Financial Services have come as the lead alternative services and promise to bring in bigger percentage of telecoms revenue.

The generation Y (Young people) that are the biggest population are increasingly using data services and less voice. Many young people will increasingly pay more for data than they would pay for voice more so that Voice over IP option is becoming a reality. The telecoms that will survive the future should start shifting their business model from minutes to bytes.

MTN, Orange, UTL, Warid and Airtel Uganda have all launched data services some offering true 3.75G experience while others offering 2.5G marketed as 3.75G! The market forces will prevail and telecoms that offer good speeds and affordable bytes (not minutes) package will prevail and lead the future.