Zimbabwe regional media have reported that Econet Wireless is to implement a 35% cut on staff salaries as one of several cost-cutting measures being introduced.

In early June market analysts predicted tough times ahead for Zimbabwean mobile companies, simultaneously advising authorities against an additional tariff reduction, which, they claim, could lead to smaller operators being ‘priced’ out of the market.

The government this year instituted a 35% tariff reduction to 15c per minute and has reportedly scheduled an additional tariff cut to 12c by January 2016, as well as a further cut to 9c per minute by January 2017.

According to a report published by NewZimbabwe.com, Econet Wireless last month reported a 41% decline in after-tax profit for the year ended February 2015.

The company has cited the government’s decision to implement tariff cuts on voice, airtime and mobile handsets, the publication claims.

It quotes a statement saying, “The company has had to cut capital expenditure, and stop further employment creation for the first time since it began operations.”

In May the company stated that it was owed more than $26 million in interconnection fees by state run telecom companies.

At the time James Myers, chairman of Econet Wireless said, “Telecoms operators throughout the world pay each other interconnect fees for traffic terminating on each other’s networks. A disturbing trend has emerged over the last five years in which NetOne and TelOne have been increasingly unable or unwilling to settle their debts.”

Last week Econet was compelled to refund subscribers who had lost airtime as a result of faulty billing.

Industry sources in Zimbabwe claimed that the situation forced the country’s telecom regulator Potraz to intervene.

"You have been awarded free airtime as an apology for the inconvenience you suffered as a result of challenges with our billing system from 7 to 13 June," Econet said in a text message to subscribers.