Potraz okays 50% telecomms tariff hike

Zim Now Writer

Telecommunications firms have been given the greenlight by the Postal and Telecommunications Regulatory Authority of Zimbabwe to review their tariffs by 50%, ahead of a further 50% price hike expected in next month.

Telecommunications firms operating below profitable thresholds have justified the increase, despite the apparent dollarisation of mobile money transactions.

Potraz director-general, Gift Machengete, said the increases were necessary to prevent excessive pricing by operators, and “if left on their own, they can charge whatever price they wish to charge”.

“As a regulator, we have to fix the tariff so that they cannot just charge whatever they want. In order to do so, we need to then use a scientific method of coming up with tariffs, and a method that will also satisfy the operators that the tariffs are fair on their part,” said Machengete.

Liquid Intelligent Technologies said the hikes were long overdue because telecoms firms were operating “under desperate and untenable conditions, which have resulted in the business costs surging in line with exchange rate fluctuations”.

Network expansion plans, operators said, were stalled and, coupled with obtaining power challenges, have caused dropped calls and lower levels of network availability.

A Liquid statement confirmed the 50% industry-wide tariff increase with immediate effect and another 50% effective April 1, 2023, for products and services. The statement added: “for us to continue providing you with the best possible quality of service, there is a need for constant upgrading and improvement of the network infrastructure”.

Econet Zimbabwe also welcomed the increase, saying it will help to cushion the operating costs occasioned by the country’s rampant inflation.

Telecommunications tariffs before the increase were below regional benchmarks and resulted in underinvestment in the sector.

“We will continue to press for tariff revisions that maintain the value of our service offering,” said Econet Zimbabwe.