Zimbabwe’s telecommunications watchdog has ordered telecommunications group Econet Wireless to reverse its 60% cut in tariffs.

Zimbabwe’s largest mobile operator Econet -- which says it has 8 million subscribers -- announced last week that it had slashed cross network call tariffs by as much as 60%.

This move subsequently brought down the cost of placing calls to other networks from 25 cents to 10 cents a minute.

However, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has argued that Econet cannot effect a tariff reduction that is greater than 50%

Complicating matters, three Zimbabwean mobile telecom firms – Econet, Telecel Zimbabwe and state run NetOne – are locked in a bitter price war, which has seen them introduce packages and promotions giving bonus airtime for top-ups as well as tariff reductions.

Telecel and NetOne, for instance, are giving no less than 100% bonus talk time on top ups.

But this has not stopped Potraz from directing Econet to revert back to its 25 cents a minute tariff for cross network calls by Friday.

Potraz has also instructed Econet while to stop all adverts promoting this tariff reduction by 4pm on Tuesday 20 August.

“We hereby direct Econet to stop the implementation of the advertised tariffs with immediate effect and no further ‘Buddie Zone’ advertisements should be flighted in any media issue or released after 4PM on Tuesday the 20th of August 2013,” Potraz said in a letter to Econet Wireless.

If Econet fails to revert to the 25 cents per minute tariff for cross network calls, it could be penalised, the company said in a statement on Tuesday afternoon.

It added that it was disappointed by Potraz’s directive, saying the company “will take the steps necessary to protect the interests of its customers and ensure competitiveness is protected” in the market.

“The regulator is there to create a level playing field. Now when we take steps to deliver affordable services to our own customers, we are barred. This leaves us wondering just how level our playing field really is,” Econet said.

Econet, though, said the 10 cents tariff had been well received by its subscribers, with “usage having risen sharply since the tariff was effected”.

Analysts have said the 60% reduction in tariffs by Econet was in response to the market share that Telecel Zimbabwe and NetOne were gaining as a result of promotions they have been running.

However, Econet chief executive officer, Douglas Mboweni, said last week that Econet’s tariff reduction was not in response to heightened competition from its rivals.

These developments also come in the wake of Econet barring users of its EcoCash mobile money transfer service from sending money to recipients outside the Econet network.

Furthermore, last month, Econet disconnected with Telecel, saying the latter was not licensed under Zimbabwean laws.

However, the disconnection dispute has since been resolved after Potraz renewed Telecel’s licence.