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The current economic situation makes it particularly important that private sector projects exploiting Information and Communications Technology (ICT) achieve successful outcomes. Tanzania Regulatory framework determines regulation and policy pertaining to control prices and thus ensure consumer protectionism.
The overall objective of this study was to assess the criteria used by mobile phone companies in setting their prices per call per minute, a case of Airtel Tanzania Limited. Specifically, the study wanted to determine operational costs of making a call per minute, establish the profit margin wanted by the mobile companies and to find out the criteria used in setting prices of making a call. It further examined the satisfactory of the prices charged by the mobile companies under study and to determine the minimum possible price that can be charged per call per minute at Airtel Tanzania Limited.
The study reviewed some literature relevant in order to get the necessary theoretical background to the topic. In order to collect data, both primary and secondary data, were used. These include questionnaires, observation, interviews and documentaries. Data was collected from 30 respondents. The study revealed that, some competition among the mobile phone operators should be used as primary criteria to be used by mobile phone companies to set price of making a call. Other factors used as criteria include, operational cost, profit margin, investment returns, and market behavior.
The study concluded that mobile phone companies have several criteria in setting prices. It is thus recommended that prices to be set should be based on competition among mobile phone companies. This will likely reduce price per call to customer |
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