Channel cum Pricing War: MTN reverts to previous cost of sales structures with banking partners
MTN has released a statement on the negotiations that derailed the suspension and restoration of digital banking services earlier this month.
The telecom company said in a statement that it would revert to its previous cost of sales structures with banking partners until a new long-term agreement can be reached on a sustainable pricing structure going forward.
The sale of airtime through MTN’s banking channel had been temporarily suspended by the banks on April 2nd due to a dispute over a reduction in the cost of sales associated with the channel. However, services were restored on Sunday, April 4, 2021 with customers able to access all services following the intervention by our regulators including the Minister of Communications and Digital Economy, the Nigeria Communication Commission and the Central Bank of Nigeria.
‘’We have also reverted to the initial commission structure, while we engage with the banks to agree on a pricing basis that will result in the reduction in the costs and align with best international practice.’’ the statement read.
MTN says the impact of the disruption was minimal on its operations as they were able to successfully activate alternative channels to enable customers to purchase airtime and stay connected.
‘’We regard the banks and other Financial institutions as valued stakeholders in our business channels and we will continue to work towards a mutually beneficial business relationship.’’ the statement further read.
In order to further expand the range of channels available to customers, MTN says it has activated a number of new channel partnerships with fintech partners and these will remain in place, significantly expanding the channels available to its customers and increasing its sales and distribution network.
The new channel partners include Sparkle, Konga Pay, Barter By Flutter Wave, Jumia Pay, OPay, Kuda, Carbon, BillsnPay, MTN On Demand, MTN Xtratime airtime loans, myMTN Web and Momo agent.
