A system dynamics Pricing model for stabilizing prices for telecommunication products and services in Uganda
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Date
2012-06
Authors
Mayoka Kituyi, Geoffrey
Moya, Musa
Rwashana, Agnes S.
Rwashana, Angnes
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Abstract
This study involved the use of systems dynamics approach to develop a pricing model for
telecommunication goods and services in Uganda. Primary data were collected from four
telecommunication service providers and Uganda Communications Commission, a regulatory body of
telecommunications in Uganda. Descriptive statistics and factor analysis with principal component and
varimax rotation methods were used to determine the most important factors that affected the pricing
decisions made by telecommunication firms. These factors were further analyzed and modeled using
Vensim PLE simulation and modeling software, to develop a new pricing model for telecommunications
goods and services. The findings indicate that demand and market based pricing approaches are the
significant approaches used to set prices for telecommunication products and services in Uganda. The
main factors affecting prices of telecommunication goods and service include operating costs, forces
of demand and supply, foreign exchange rate, inflation and excessive competition. This paper presents
four policy strategies for stable telecommunication prices as Taxation, Liberalization, Government
incentives and Wealth maximization.
Description
research paper
Keywords
System dynamics, telecom prices, pricing methods, developing countries, Uganda
Citation
Mayoka,K.G.,Moya,M.,Rwashana,A.S.,Rwashana,A.(2012),A system dynamics Pricing model for stabilizing prices for telecommunication products and services in Uganda,1(1),1-8.