Safaricom withdraws decision to terminate post-pay tariff

In Summary

  • Rather than cancel the tariffs, Safaricom says it will either increase the cost of each bundle or decrease its size at the current rates to maintain its customers while ensuring profitability.
  • The telecoms firm last year announced that the tariff would be shelved as it was loss-making.
  • The Karibu post-paid tariff currently has two price plans; customers pay either Sh1,000 or Sh2,500 per month for a mix of talk time, text messages and data bundles.
Safaricom
Safaricom CEO Bob Collymore. Safaricom has hinted that it will only revise terms of use for the Karibu post-paid tariff which has more than 100,000 subscribers, offering reprieve to the customers who were braced for a termination of the service in May. FILE PHOTO | NATION MEDIA GROUP

Safaricom has hinted that it will only revise terms of use for its Karibu post-paid tariff, offering reprieve to more than 100,000 subscribers who were braced for termination of the service. Reports Mugambi Mutegi  of nationmedia.com

The telecoms firm last year stopped taking applications from new subscribers and announced that the tariff would be shelved in May this year as it was loss-making.

The telco, however, now says that it will instead tweak its terms of use to retain the thousands of subscribers, who could opt for other service providers. READ: Safaricom terminates post-paid calling tariffs

Customers on the tariff currently pay either Sh1,000 or Sh2,500 per month for a mix of talk time and text messages (for use within and outside Safaricom’s network) as well as data bundles.

Rather than cancel the tariff, Safaricom says it will either increase the cost of each bundle or decrease its size at the current rates to maintain its customers while ensuring profitability. This will allow them to retain those on the tariff and begin taking on new subscribers.

“Termination of the product is not an option; customers will have to be offered the tariff under new terms, which are still being finalised,” said a company official familiar with the matter.

“The new tariff will be made public in April and will take effect the following month. Those who chose to continue will be migrated.”

The Karibu post-paid tariff currently has two price plans. Read further on BusinessDaily

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