[PHNOM PENH POST]
MOBILE company Hello has drawn criticism from competitors and customers
for its recent prepaid plans, saying low rates are unsustainable and are
causing network congestion.
However, its Chief Executive
Officer Simon Perkins yesterday stood by the tariff, saying the
promotion has proven successful and the firm was improving its network.
Hello
has offered a number of prepaid plans with unlimited on-network
calling, most recently charging $3 a month. While customers have
complained that Hello’s network is now overcrowded, its competitors have
questioned the financial viability of the strategy.
“Unlimited voice or data packages on mobile networks are devastating. It’s not sustainable,” Smart Mobile CEO Thomas Hundt said.
The
increased usage as a result of these plans tends to drag on network
capacity, he said, adding low tariffs likely meant the firm is losing
money in an effort to attract customers.
Mobitel General Manager
David Spriggs said a level of profitability was required that allows
operators to invest in new services and coverage expansion.
Some local mobile phone shops, as well as Hello customers, have described similar problems with the company’s service.
Chhian
Heng, a manager at Hakse phone shop on Norodom Boulevard, said calls on
Hello’s network has been “very difficult for two months since the
promotion began.”
Ung Sivthong, a Hello customer who works at
Olympic Thmey Handphone Shop on Norodom Boulevard, claimed it has been
increasingly difficult to make calls after 9 pm. He switches to a second
phone with a Metfone SIM card when his Hello handset no longer works,
he said.
However, Hello’s Simon Perkins said the company has been
successful with its plans to charge a flat rate per month. The firm has
invested in its network to meet the new demand from the pricing plan,
with some upgrades finished on Monday, he said. “Largely those issues
have gone away,” he added.
The plan is also providing revenue for
the firm. “The interesting thing is we do make money. We have a regular
income stream from people who subscribe from those packages,” he said,
adding the company’s market share continues to grow.
Perkins also
responded to claims by rival firms that Hello has ignored a Ministry of
Post and Telecommunications prakas outlining a minimum price per minute
for calls, enacted in late 2009. He said Hello appealed to the ministry
when a number of companies continued to offer prices below those
dictated by the prakas.
Hello eventually offered the MPTC an
ultimatum when the ministry failed to enforce the law: either do so, or
Hello also would ignore the prakas. “We decided to take the action we
did in early 2011, which was to go out there with a pricing plan that
was going to give the market a surprise,” he said.
Perkins said he has no plans to stop the firm’s promotions. “Realistically the ball is in MPTC’s court. They know how we feel.”
Minister of Posts and Telecommunications So Khun yesterday declined to comment.
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