Gov’t blames mobile phone tariff increase on exchange rate hike

JUBA – South Sudan’s government on Wednesday attributed the recent surge in mobile phone tariffs to the depreciation of the South Sudanese Pound against the U.S. dollar.

Michael Makuei Lueth, the Minister of Information and Communication, explained during the ongoing 8^th Governors Forum in Juba that the rise in telecom tariffs was a consequence of the weakening local currency.

“Of course, there are a lot of complaints. People have been saying, why are the tariffs raised? Frankly speaking, South Sudan tariffs are the lowest in the region,” Makuei said.

He noted that telecom operators charge 0.4 cents per minute, which he described as the lowest rate in the region.

“They are the lowest in the region. We charge 0.4 cents per minute. Before, when our currency was strong, we did not feel it,” he said.

“But when our currency fell, the exchange rate affected the tariffs. So the problem is, we have not increased the charges, but the exchange rate.”

Makuei clarified that operators charge in South Sudan Pounds, but the rates are influenced by the conversion of hard currency into the local currency.

“So they don’t charge according to the international norms, they charge on hard currency. But you translate that hard currency into your local currency. In the course of doing that, our charges and tariffs go up,” he said.

The minister also revealed that the government permitted telecom operators to adjust their tariffs after they threatened to cease operations due to the rising costs of running their services.

“They (mobile operators) said because of the Central Bank. The Central Bank is not in a position to allocate lump sums to the operators in accordance with the Central Bank rates. So we left this to the Central Bank,” he said.

Makuei added that the operators have been instructed to charge at the official exchange rate set by the Central Bank.

“When our currency gains power, and it gains momentum, the rates will automatically also begin to fall. So we have two options, either to tell the companies to close down, or we let them continue in accordance with the bank rate.”

For those unhappy with the increased tariffs, Makuei offered a blunt suggestion.

“If you are anybody who is complaining, refrain from using the telephone. Yes, because it is not compulsory. If you feel that you are being overcharged, you better refrain from using it,” he said.

He also criticized lengthy phone conversations, suggesting that reducing usage could mitigate costs.