12 November 2024

The Liberia Telecommunications Authority (LTA) has ordered a reduction in the tariff floors for voice and data services provided by telecom operators, which took effect on 22 October for voice, while the adjustment for data takes effect on 22 November.

This is expected to contribute to a reduction in the cost of accessing telecommunications services in the country. The minimum price that telecom operators can charge for a minute of voice calls is being increased from 0.0156 Liberian dollars to 0.0130 Liberian dollars. The price floor for data has been reduced from 0.00218 to 0.00153 Liberian dollars per megabyte.

Currently, Orange and Lonestar Cell MTN charge L$0.12 and L$0.25 respectively for voice services. The International Telecommunication Union (ITU) in a 2024 report states that the price of a gigabit of mobile internet in Liberia is 27.9% of the Gross National Income (GNI) per capita, which was $730 in 2023 (World Bank).

This figure needs to be below 2% for the service to be considered affordable.

This tariff adjustment is in line with the actions taken by the LTA since the beginning of the year to protect consumers and stimulate competition in the telecoms market. In March, new regulations were put in place to strengthen the quality standards imposed on operators. At the same time, the regulator is currently conducting an in-depth study of the costs charged by operators, in collaboration with the World Bank.

A reduction in tariffs should promote better access to telecom services for the population and encourage their use. In sub-Saharan Africa, the high cost of services is one of the main reasons for the low penetration rate of mobile Internet, according to the Global Association of Mobile Phone Operators (GSMA). The ITU indicates that only 30.1% of the Liberian population, estimated at 5.4 million by the World Bank in 2023, has access to the Internet. The mobile penetration rate is 50.5%.

In addition to the cost of telecom services, Liberian citizens regularly express their dissatisfaction with the quality of services offered by operators, particularly on social networks. However, if operators are not forced to drastically reduce their rates to remain competitive, they will be able to generate additional revenue, which can be reinvested to improve the quality of services. In addition, the new regulations provide for penalties against operators in the event of non-compliance with quality-of-service standards.

“If the price floor is maintained and respected, it will allow service providers to invest further in expanding and improving the coverage of their networks, which will improve the quality of service and user experience,” said Angela Cassell Bush, Acting Chair of the LTA.