Fierce price war between major providers MTN Liberia and French telecom giant Orange has made fuming consumers who are feeling the crunch of the bitter-sweet competition to see the regulator as culprit.
While the Liberia Telecommunications Authority (LTA) has taken significant steps to foster stability through the implementation of price floors, it is the cutthroat competition between these two industry titans that is leaving everyday users feeling the financial strain.
For years, the skirmish has been marked by aggressive promotional offers and steep discounts aimed at capturing market share, such as the infamous “3-day-free call” campaign. These offers, while initially alluring, have led to unintended consequences, including a decline in service quality and connectivity.
Consumers are increasingly reporting issues with data usage, poor call quality, and a noticeable degradation in overall service as both MTN and Orange scramble to outdo each other.
Since the LTA set a price floor in 2019—establishing rates for voice calls and data services at $0.0156 and $0.00218, respectively—telecommunication revenue has grown markedly.
In fact, annual revenue rose from $96 million in 2014 to over $174 million in 2023. However, the competitive fervor between MTN and Orange threatens to overshadow these gains.
The relentless undercutting of prices by both companies has resulted in a race to the bottom, where consumer satisfaction has slipped through the cracks, leaving users grappling with increasing costs disguised as promotional savings.
Despite what some may view as excessive price cuts leading to poor service, the LTA has firmly maintained that their measures are not to blame for the consumers’ plight.
The Authority has assessed the situation and acknowledged that the core issue lies with the tactics employed by the two providers in their bid for dominance, not with the regulatory framework they have established.
A sudden drop in promotional offers, designed to attract new customers and siphon off competitors’ clientele, has led to adverse outcomes for consumers.
The LTA’s recent measures aim to address these concerns, including penalties for operators that fail to provide quality services and enhanced protections for consumers.
However, some believe these actions may not be enough to alleviate the pressure that consumers are feeling on the ground. Complaints about disappearing data, unreliable service, and overall dissatisfaction with the telecommunications experience have become increasingly common as users struggle to cope with this volatile environment.
As the situation unfolds, the LTA has enlisted World Bank consultants to conduct a comprehensive study of the sector’s economic status—focusing on pricing dynamics and operational costs.
The results, which are expected soon, will provide critical insights into the effectiveness of current regulations and the possible need for further intervention.
While the telecommunications authority works to balance competition among operators and protect consumers, it remains clear that the aggressive rivalry between MTN and Orange continues to undermine market stability.
