Michael Makuei Lueth, Minister of Information during a cabinet meeting on 10th July 2020. | File photo//Eye Radio

The Minister of Information said the government had to choose between closing down telecommunication companies and maintaining the rise in tariffs triggered by the depreciation of national currency and high cost of maintaining telecommunication infrastructures across the country.

Addressing the 8th Governors Forum on Wednesday, Michael Makuei gave a detailed clarification on the recent three-phased increase of mobile tariffs by the country’s telecommunication companies Zain, MTN and Digitel.

Minister Makuei said he understands the public dissatisfaction, explaining that the increase in tariff rates was prompted by the depreciation of South Sudan pounds against U.S. dollars and other foreign currencies.

“We have not increased the charges, but it is the exchange rate. It is the weakness of our currency that brought us all of these problems,” Makuei told the forum.

Minister Makuei said the telecom operators had been threatening to shutdown their service having – complained about the cost of maintaining telecommunication installations – particularly in the remote areas where there are very few subscribers to recover the cost.

“The operators had been threatening, saying we are closing down some of these towers all over South Sudan and especially in the rural areas where they are losing more.”

“They are saying we will only maintain our activities in the cities and in the towns. And we said why? They said, because we talk of the central bank, the central bank is not in a position to allocate lump sum to the operators in accordance with the central bank rate.”

Mr. Makuei said his ministry decided to leave the issue between the operators and the Bank of South Sudan, where both parties agreed that the communication firms will adjust their rates with the official currency exchange rate.

He said the current telecom tariffs are not even charged at the black market rate but at the bank rate, while warning that if the currency depreciation continues, the tariffs will simultaneously go up.

“So we had two options, either to tell the companies to close down, or we let them continue in accordance with the bank rate. And we opted that the better that we continue with them and they are paid according to the bank rate.”

Minister Makuei further stated that it is up to those who feel overcharged by the telecom operators to choose to end their subscription and assess any other available options.