Original report from Phnom Penh
05 January 2010
Mobile phone companies have begun adjusting their rates in accordance to a government order that puts a price floor on the increasingly competitive industry.
Star-Cell 098, for example, had been running a promotion that offered call rates between $0.01 and $0.02 per minute, but since Dec. 22, the company has raised its rates by more than $0.05.
“We ended the promotion,” a customer service representative told VOA Khmer. “The previous price did not adhere to the directive of the ministries. From now on it’s $0.05 for internal calls and $0.07 for external calls.”
Economic analysts have said the new directive will hurt competition and favor larger mobile phone companies, but officials say they had no choice but to intervene in what had become a prolonged price war.
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