We are Appealing to The LTA Board of Commissioners & Pres George Weah to kindly reconsider by going back on the drawing board and redo the whole price floor document and adjust the charge on “Data” which has been imposed on both GSM Companies.
Introduction:
The new LTA Price Floor has been causing stir in the Liberian public since the start of its implementation on September 1, 2019. Many Liberians including ourselves see the new prices in data and voice calls as exorbitant and an addition to the already economic hardship the country is faced with.
The end of the US$1 for unlimited on-net calls (also known as three days free calls) campaign Was a bold step taking by LTA in the interest of both GSM Companies Lonestar Cell MTN & Orange, as this will revive both companies as the 3days free calls was actually killing the both companies. But the new Data price put forth by the LTA has become even more unbearable.
-Arguments in the public is divided about who to blame about the new price floor; some say the GSM Companies, while others put the blame on LTA.
However, after taking a hard look at the LTA’s new price floor for GSM Companies, & Both Companies New Prices as off September 1st, we penned the following short analysis below.
Details:
-The LTA’s new price floor puts one megabyte (1MB) at $0.00218. This means, both Orange and Lonestar Cell MTN will pay the Liberia Telecommunications Authority $0.00218 for every megabyte they offer to customers. So, let’s take a look at a data package of a GSM company at $60 for 25GB.
GSM Company Pays LTA Per 1MB: $0.00218
Megabyte to Gigabyte Conversion: 1,024MB = 1GB, therefore 1,024MB x $0.00218 = $2.23 for 1GB (GSM Company Pays to LTA)
A GSM Company $60 Data Package @ 25GB:
$2.23 per GB x 25GB = $55.75 (LTA’s Charge)
$60.00 (GSM Data Package) – $55.75 (LTA’s Charge) = $4.75 (GSM Company Profit)
From the above calculation, this means that the GSM Companies are losing while LTA is gaining more at the detriment of GSM Companies and the ordinary citizens.
Let’s take a look at Lonestar Cell MTN Kool4U $29.00 Package:
In the Kool4U package, Lonestar Cell MTN offers 7.4GB, 200mins (Lonestar to Lonestar), 60mins International Calls plus 60mins to other networks. Just from this package, LTA rakes the following amount in data and on-net calls:
$2.23GB (LTA Charge) x 7GB = $16.50
$0.0156 (LTA Charge) x 200mins (Lonestar to Lonestar) =$3.12
As you will observe above, just from the data and Lonestar-to-Lonestar call in the Lonestar Cell MTN Kool4U Package, LTA makes a whooping $19.62 excluding SMS and International Calls rates they charge.
Like Lonestar Cell MTN, LTA makes $66.90 from Orange’s $79.00 package only for data.
Conclusion
It is understandable that the Liberia Telecommunications Authority wants to raise money for the Government of Liberia. However, the data rates are overpriced and will not only limit majority of Liberians access to the internet, but also create strain on the two major GSM companies that are already merely keeping operations afloat due to Liberia’s economic circumstances.
It will be in the best interest of the all parties to go back to the drawing board and redo the whole price floor document. The cancellation of the unlimited three days calls for US$1.00 Is not bad at all, but the new price on data will limit Liberians access to the internet which is an abuse of their rights and is anti-ProPoor.
We are Appealing to The LTA Board of Commissioners to kindly do the right thing now, and in the interest of the Liberian people as this move may just make Liberians more disenchanted with the government and the President especially at the time where civil servants salaries are being reduced.