Uganda is a landlocked country in East Africa with an estimated population of about 31 million people. It is bordered on the east by Kenya, on the north by Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda and on the south by Tanzania.
MTN Uganda, one of four very competitive mobile operators in the country, carried out a pilot of a“Dynamic Tariffing” (DT) product offering using Digitata’s “Dynamic Tariffing Engine” (DTE) in Gulu, in the northern part of the country starting in March 2008. The pilot proved to be a big success, attracting 40,000 new subscribers in just over three months.
MTN named their DT service “MTN Zone” and launched commercially on, 31 July 2008, with the objective of attracting 50% of their 3 million customers to the new service in 6 months.
After only five days after the launch of the pilot, over 800,000 customers registered for the MTN Zone service! The average discount received by customers during this time was70% during the day and 99% in the evenings. Twelve days after the launch, Eric van Veen, COO of MTN Uganda said: “In terms of product uptake this is the best performing in the history of any product launch in Uganda and most likely the region…our target was to reach 50 per cent of the base within 6 months, but we should reach that target over the weekend, an amazing response to an amazing product.”
By October 2008, the service had attracted over 2 million subscribers, representing 60% of the customer base, with a 70% increase in call volume since the introduction of the service. Thetraffic increased from 1.7 million minutes to 3 million minutes since the launch of the service, with customers receiving an average discount of 45 to 50% % during the day and 95% in the evenings.
News article, 05 October 2008: http://newvision.co.ug/D/8/220/653082