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Zimbabwean telcos pressured to lower tariffs

Zimbabwean telcos pressured to lower tariffs
By Tawanda Karombo, Journalist
20 Mar 2014

There is growing pressure from Zimbabwean consumer groups who have threatened a boycott of telecoms services if mobile companies in the country do not lower calling and text messaging tariffs.

Mobile network operators in Zimbabwe have defended their tariffs, saying they factor in other costs such as those for running generators to cover for periods of power outtages.

Cross network mobile calls in Zimbabwe cost about $0.23 cents while same network calls are tariffed at around $0.20 cents per minute although per second billing is also now functional. Text messages cost slightly below $0.10 cents per text.

The Zimbabwean telecommunications regulator, the Posts and Telecommunications Regulatory Authority of Zimbabwe (Potraz) is undertaking a study into the cost structure for mobile network operators, a senior government official said this week.

“Potraz and ZERA are set to conclude cost of supply studies intended to ensure tariffs are cost based with no recovery of inefficiencies,” said Zimbabwe’s deputy minister for Industry and Commerce.

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Reuben Gwatidzo, the executive director for the Information Society Initiatives Trust said technological improvements had lowered down running and operational costs.

He said this should equally translate to reduced tariffs and threatened a consumer boycott of mobile telephony and mobile banking services if the call charges were not lowered.

“Technology costs have gone down. Our expectations are that if these people do not start sharing infra and distribution networks, we have to say we no longer interested as consumers,” he said.

CCZ officials said they are advocating for increased sharing of infrastructure between mobile networks. They said this would enable the companies to spread infrastructure and coverage to areas currently not covered.

“We want (services) to be inclusive, for coverage, for devices. We tired of monopolies in telecommunications. Those that are not covered must be covered through the Universal Services Fund (USF),” said Gwatidzo.

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