Zimbabwe approves 61% telecoms tariff increase
Telecommunications services providers in Zimbabwe have raised their tariffs after the telecoms regulator approved a data price increase of up to 61% for November 2022. The price hike has impacted the local currency, which remains unsteady.
Subscribers of Telecontract (Telco) were notified of the increase on 14 October.
An excerpt from the notification by the company and signed by Managing Director Godfrey Jowah reads: “This letter serves as a reminder that the November 2022 invoice for ZWL services will have a 61% price adjustment in order to maintain the quality of service you deserve and to remain viable as an operator. While the economic environment has stabilised somewhat in the last few months, the telecoms sector had fallen behind in effecting increases. Given that it is a highly capital-intensive sector which needs to upgrade infrastructure regularly using foreign currency, the increases are essential.”
Jowah added. “As communicated in July 2022 the regulator, POTRAZ, has granted all operators in the telecommunications sector a blanket 61% tariff increase for August, 61 % for September and another 61% for November 2022 for broadband and related services.”
TelOne has also announced new prices for their voice and data service effective 1 November 2022.
Economist Gift Mugano said: “Depreciation of the local currency, rising inflation, and the re-emergence of the parallel market” as creating a lot of “challenges that are negatively impacting almost every business” in Zimbabwe. There has however been some relative stability in currency exchange rates in the past month.”
MNOs in the country continue to struggle to secure foreign exchange required for network upgrades, software license fees, and fuel for base stations that rely on generators to operate.