Gvt slashes mobile data prices

Government has announced that it has downwardly reviewed mobile data charges from US12,5 cents per Megabyte (MB) to US5cents per MB.

This will apply especially for data that is used outside WhatsApp, Facebook and Twitter bundles, among others.

In a statement, industry regulator, Postal Telecommunications Regulatory Authority of Zimbabwe (Potraz), similarly announced a reduction of the USSD charges threshold in a development that is “meant to address the high transaction cost of e-payments and increase financial inclusion”.

The new prices shall apply with effect from July 1.

Potraz has since engaged the Reserve Bank of Zimbabwe (RBZ) to ensure that the reduction is passed on to the transacting public.

Further, the national interconnection rate will be cut from the current US4c per minute to US2c per minute, exclusive of taxes.

According to Potraz, the threshold for mobile voice and SMS (short messaging service) will be reviewed in due course, while fixed voice charges shall be left to market forces subject to regulatory approval.

The current review is borne out of a cost modelling exercise for telecommunication network services in Zimbabwe.

The costing exercise was done by Detecon and was premised on the Long Run Incremental Costing (LRIC) models that were built by the company in 2014.

“Pursuant to the extensive consultations that were done with telecommunication operators and stakeholders on the implementation of the 2017 LRIC models results, the Authority has formulated an implementation roadmap for the results.

“In doing so, the Authority took into account the prevailing economic environment as well as the competing needs of ensuing operator viability and service affordability for consumers,” read the statement.

“These need to be balanced to ensure the delivery of high quality innovative services and applications which are critical in enhancing consumer welfare, business continuity and the country’s overall business competitiveness.”

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