INTERNET – End of the floor price

The floor price for the purchase of a gigabyte of mobile internet is repealed.

The ministerial decree concerning the setting of internet floor prices is repealed, as announced by the Ministry of Digital Development, Posts and Telecommunications (MNDPT).

It’s a turnaround. After collecting the opinions of users and consumers of internet services, the State revokes its decision to set the price of a gigabyte at $0.95. The MNDPT announces that “the government is putting an end to the internet floor price”, a measure announced last night via a press release. According to this ministry, this adjustment comes after an evaluation of the different pricing practices following the application of this decree, setting the price per gigabyte at less than 1 dollar. It was therefore announced yesterday that the ministerial decree establishing a floor price for the purchase of a gigabyte of mobile internet is repealed. “The government noted that the prices kept artificially high by telecommunications operators did not reflect the commitments made during the negotiations. Consequently, this measure aims to restore fair competition and lower costs for end users,” specifies the MNDPT press release.

Negotiations had started upstream between the State and local telecommunications operators in April 2023, as part of the reform of the telecommunications sector.

Suspense

It was at the end of these meetings that it was decided to establish a floor price for the purchase of a gigabyte. However, it seems that on the ground, the reality is quite different. “The current offers do not correspond to the commitments made by the operators during these discussions and negotiations,” underlines the MNDPT. This situation is also felt by users, as evidenced by their dissatisfaction with these new price offers. However, the government says it wants to continue its momentum, indicating that it wants to make internet services more accessible with a view to protecting consumers and “strengthening the internet penetration rate” on the Big Island.

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Tahina Razafindramalo, Minister in charge of Telecommunications, recognizes for her part that “consumer rights must not be compromised by pricing policies unsuited to purchasing power and that the government must take the necessary measures to ensure that the interests citizens always prevail.” The question nevertheless arises as to whether the more than 4 million subscribers could benefit from the reduction in price offers offered by other operators. For the moment, this question remains unanswered.

Itamara Randriamamonjy

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