Telecom

Zimbabwe plans a third increase in telecom service tariffs

Monday, 20 January 2020 18:07
Zimbabwe plans a third increase in telecom service tariffs

(Ecofin Agency) - Mobile operator Econet Wireless Zimbabwe, the national telecom market leader, announces it is in talks with the Post and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), for a possible further tariff increase.

“The company, together with the other industry players, continues to engage with POTRAZ in an effort to go back to a tariff regime that will ensure continued viability of the sector as well as ensure that quality of service standards are maintained,” Econet said in a statement.

Since the second quarter of 2019, Zimbabwe has been operating in an inflationary economic environment that continues to erode tariffs for goods and services. The telecom sector has already made two tariff adjustments to maintain the profitability of telecom operators.

The first price increase (+23%) took place in April 2019 and the second (+95.39%) in October 2019. According to Econet Wireless Zimbabwe, the decline in the national economic environment is undermining the national telecom sector at various levels, not just among consumers. The multiple power cuts that are forcing telecom companies to rely more on generators, against a backdrop of rising fuel costs, have also pushed up operating costs.





 
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