admin
Government is committed to assisting the telecommunications sector boost its viability by improving the regulatory environment and addressing challenges the industry is battling with, a Cabinet minister has said.
Information Communication Technology, Postal and Courier Services Minister Supa Mandiwanzira last week said it was in the interest of the Government to grow the sector as it had a multiplier effect on the rest of the economy.
Reflecting on recent developments in the telecommunications sector in which Econet, the biggest player, announced that its revenues were going down and had demanded suppliers reduce prices by 15 percent and also cut salaries by 20 percent, Mandiwanzira said the happenings were reflective of “something wrong” in the sector and the economy as a whole.
“If they (Econet) were doing well and the industry was doing well, we do not think there would be that kind of development. So it is our responsibility to check what is going on because we think that what is happening at Econet is also happening at other operators but is just not being pronounced in the media,” he said.
“And we want to get to the bottom of the problems that the telecommunications industry is facing so that we can assist in coming up with solutions.”
He said growth in the sector meant more revenue would also accrue to the Government.
Minister Mandiwanzira appeared to back Econet’s decision to cut salaries and force through a supplier price cut arguing the firm was allowed to do anything in its powers to remain viable.
“Econet is a business and when a business sees threats it reacts in a particular manner to save itself, to remain commercially viable and this might be what is going on,” he said.
He said those not happy to conduct business with the Strive Masiyiwa-founded company were free to deal with other players in the telecommunications sector.
“The market has a choice. This is the reason why they are multiple players in the industry so people can choose,” he said.
Minister Mandiwanzira in the meantime said policies that the Government was spearheading in the sector such as infrastructure sharing were not meant to punish any player but were meant for the growth of the whole sector.
The Government has given telecoms companies a 90-day deadline to come up with concrete proposals on infrastructure sharing, which is expected to have benefits cascading to the consumers.
But there are market perceptions that the move was particularly targeted at Econet.
“We need to clear this perception that we are anti a particular company or particular companies or that we favour State-owned enterprises in the telecommunications sector, nothing could be further from the truth,” Minister Mandiwanzira said.
Online Reporter