What next on high phone, data charges?

For a long time, Malawians have complained about high cost of telecommunications services, notably voice calls and Internet.

This week, Malawi Communications Regulatory Authority (Macra) unveiled results of a survey undertaken by the National Statistical Office (NSO) which established that many Malawians have access to mobile phones and other telecommunication facilities, but usage remains low because of the high cost of services charged by operators.

That Malawi has some of the highest tariffs in ICT products is not news. What is important, though, is that the survey has vindicated cries of millions of Malawians who use the services.

Further, the survey established—again not surprising—that Internet penetration in Malawi is very low. This is unfortunate, especially in today’s ICT era, where life and business revolve around the Internet.

My heart bleeds when Malawians are being asked to pay more for the generally poor quality service from the operators—Airtel Malawi, TNM, Malawi Telecommunications Limited (MTL) and Access Communications Limited (ACL)—characterised by a high rate of dropped calls (mafoni omangodukaduka munthu asanathe kulankhula), poor quality reception that one has to make an effort to clearly get the caller at the other end.

Rates are supposed to match the services on offer. But, having been a subscriber of Airtel, TNM, MTL and ACL, I do not believe the tariffs Malawians are charged fit the bill.

In recent years, the operators have been enticing subscribers to make voice calls at “reduced” rates through never-ending promotions or purchase of “bundles”. In reality, this means the cost of the calls is supposed to be lower and one wonders where they get the prices on the market. For example, if Airtel says I can call TNM for K50 per minute during some hours, why not just make that standard rate?

Then we have operators such as Airtel who sell you a data bundle under a contract for a day, week or month. However, one finds that the purported one week or one month bundle has expired way before the contract period. It simply does not add up.

Ideally, Macra, as the regulator, is supposed to promote or protect the best interests of all stakeholders: consumers, operators and all. However, from the look of things, the regulator appears bent on maximising revenue for the government through fees and what have you. Remember, Macra invested millions of dollars in the Consolidated ICT Regulatory Management System (Cirms) in a bid to have revenue collection assurance.

Of course, Macra argues that Cirms, aka ‘Spy Machine’, will also monitor the quality of service consumers get. But, in my view, that sounds a peripheral objective with revenue collection the primary goal.

If Macra had the best interests of consumers at heart, surely the exorbitant tariffs should not have been normalised as it were.

Recently, we have seen commercial banks publishing their rates and what goes into their pricing of products. Telecommunications operators should be compelled to do the same because, in our context, competition has failed to benefit consumers in terms of products and pricing. What we have is one-size-fits-all pricing.

Communication is not a luxury; it is a right. Now that the survey has bared it all, what next? What redress should consumers expect? This should be the time to move forward.

Does Macra really regulate the services, prices or rates charged by service providers as other regulators do? Or, is it a toothless bulldog? Macra should grow ‘biting’ teeth.

‘Our brands are in one word, fun’

Carlsberg Malawi Ltd this month announced the appointment of Gwynyth Mchiela as its marketing director. Gwynyth has served Carlsberg Malawi since 2006 when she joined the company as public affairs manager. She later moved into marketing as trade marketing manager in 2007, and then later served as group marketing manager from 2008 to 2015. Our Business Editor, MOSES MICHAEL-PHIRI caught up with her to share her vision:

: How would you describe Carlsberg Malawi Ltd and its products to Malawians?

: I would describe, Carlsberg Malawi as an exciting place to work, because our products are ones which can provide fun to consumers. Our brands are in one word, fun. We provide products that on consumption provide both refreshment and enjoyment to consumers.

:  For nearly 50 years, Carlsberg Malawi has been a key player in the industry, in Malawi. But with the entry of other players i.e. SABMiller, how would you describe the current dynamics in the industry?

: The entry of other players on the market gives us an opportunity to operate in an environment which is competitive and therefore, one which brings out the best in us. Such an environment makes all industry-players push the envelope and work harder to provide quality offering to consumers. In the face of competition, it is on us as Carlsberg Malawi to bring our uniqueness to the fore, in order to fulfil customer expectations and stand out on the market.

: How has the company changed to reflect the evolving marketplace?

: Over the years, Carlsberg Malawi has been open minded and adaptable. In response to the growth of our market, we have among other things, established a new plant in Lilongwe and improved our production line in Mzuzu in 2011. The improvements in production support our marketing strategies, which also reflect the evolving marketplace. Some of our innovations are: the change from the old Carlsberg Green Label packaging, to rejuvenate the Carlsberg brand, making it vibrant and young. Carlsberg beer, including Special Brew and Stout, is now packaged in a Profile Embossed Bottle. Similarly, we have introduced new offerings such as Carlsberg Chill, a locally brewed premium beer, extended Sobo Squash flavours, and have rejuvenated the Quench water bottle, introducing a lighter bottle, with a more attractive label.  In addition, we now connect and interact with consumers digitally through our corporate website and Facebook, all this in response to changes in our environment.

: What have you identified as some of the prime factors for success in this business?

: One of the prime factors for success in this business, is the ability to understand, through research, how the market is developing, how fast consumer needs are changing and of course, what those consumer needs are.

: Overall, how would you describe Carlsberg Malawi performance in 2015?

: 2015 was a difficult year for most businesses and we are no different. The floods earlier in the year and the ensuing impact on our consumers provided a challenging environment for our operations and performance.

: What do you expect in 2016?

:  We are very optimistic about 2016. The programmes which we have put in place for our consumers, both in the alcohol and non-alcohol segments are exciting. We have lined up various promotions and activities throughout 2016. We believe that we are going to create opportunities where consumers will continue to connect with our brands emotionally, which will impact our brands and overall positive performance for the whole year.

:  As a new marketing director, what would you like to accomplish in the next couple of years?

: Carlsberg Malawi is in a unique position of being able to offer global brands from Carlsberg and Coca-Cola. In the next couple of years, I would like to see us offering consumers the full brand experience, one that goes beyond consumption. This I would like to accomplish by maximising on opportunities that exist globally through technology and digital communication platforms, these being the glue that link the actual consumption and the brand experience for consumers.

: How would you define success for yourself and for Carlsberg Malawi?

: The definition of success for Carlsberg Malawi is when our brands and products are first choice for consumers.

: Lastly, give us your brief professional background

: I have served at Carlsberg Malawi since 2006, when I joined the company as public affairs manager. I later moved into marketing as trade marketing manager in 2007, where I moved up the ranks serving as Group marketing manager from 2008 until my recent promotion.  I hold a BA Honours Degree in Public Relations and Management Studies earned at University of Lincoln, United Kingdom (UK). I also hold an MSc. Degree in Marketing from Edinburgh Business School UK.