Econet Wireless is fighting the Zimbabwean telecommunications watchdog, Posts and Telecommunications Regulatory Authority of Zimbabwe (Potraz) in court over a directive to have mobile companies lower voice tariffs.

The directive, said Econet Wireless, had driven down revenues for the company, forcing it to resort to cost cutting measures such as retrenching workers. Early this year, Zimbabwe ordered mobile firms to reduce tariffs by 30%.

Other mobile companies in Zimbabwe have also sought to reduce their cost structures.

However, Potraz has said in a recent report that growing competition from cheaper communication alternatives such as WhatsApp, Viber and Facebook was to blame for revenue declines in the industry than the directive to reduce tariffs.

"The fall in revenue created by a Potraz regulatory directive, which the company is contesting in court, had resulted in a decline in revenue," Econet said last night.

Econet Wireless chief executive officer, Douglas Mboweni, said the company will award shares to staff who accept the retrenchment offer.

"The shares are not part of the retrenchment package but are an incentive for speedy closure of the retrenchment process that will reward long service with the company.

"This award will only be available to those employees who have been identified for retrenchment, who voluntarily agree to abide by the process and time-frames outlined in the retrenchment process," said Mboweni.

He added that the "award of shares will be done after the retrenchment process" is completed.

The process will affect about 100 employees at the company after "Econet "undertook a comprehensive review of its staffing levels".