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Zimbabwe not ready to review mobile tariffs

By , Journalist
Zimbabwe , 11 Dec 2015

Zimbabwe not ready to review mobile tariffs

Zimbabwe is not considering a review of mobile tariffs, but is prepared to listen to the concerns of operators said the country's ICT Minister, Supa Mandiwanzira.

Mandiwanzira said that the government is trying to understand the positions from which the telcos are seeking permission to raise tariffs from the current rate of 15 cents per minute.

"We have been engaging the companies to hear their positions and trying to get an understanding," he said.

The Posts and Telecommunications Regulatory Authority (Potraz) earlier this year ordered telcos in Zimbabwe to cut their mobile tariffs by 30%.

Econet Wireless took the regulator to court, seeking permission to raise tariffs.

The Administrative Court in Zimbabwe overruled the relief sought by Econet Wireless, saying subscribers were already saddled with high tariffs. Potraz has previously indicated that it would enforce a further tariff cut in the New Year.

However, the three mobile operators in Zimbabwe – Econet, NetOne and Telecel Zimbabwe – recently wrote to Potraz in a position paper, saying "the prevailing economic decline and tight regulatory environment have resulted in subdued performance" of the telecoms industry.

"They (mobile network operators) are arguing that the economy is difficult and revenues are fast declining. But they need to be innovative and embrace newer technologies and other platforms to boost their revenue streams," said an official who declined to be named.

The Zimbabwean telcos argued that "the impact on VAT revenues is that $19 million less per quarter is being remitted to the fiscus and an estimated $40 million less per year in corporate income tax" and added that this was translating to a $120 million loss in yearly contributions to the fiscus by telecom companies.

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