Potraz orders tariff slash

Oliver Kazunga Senior Business Reporter
THE Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has ordered mobile phone operators to reduce voice tariffs from 23 cents per minute to 15 cents with effect from December 1, 2014.
The directive is part of Potraz’s implementation of a new pricing model known as the Long Run Incremental Cost presented in June this year.

An official from Potraz who preferred not to be named told Business Chronicle yesterday the regulatory authority last week issued a circular to the three mobile network operators-Econet, Net One and Telecel, directing that the tariffs would be further reduced next year and in 2016.

“We’ve directed the three mobile operators to slash their voice tariffs from 23 cents to 15 cents effective from December 1, 2014. The mobile operators are also expected to further reduce the tariffs to 12 cents next year and nine cents in 2016,” said the official.

Potraz acting director-general Baxton Sirewu could not be reached for comment by the time of going to print yesterday.

Efforts to get a comment from the three mobile network operators-Econet, Telecel and NetOne were also fruitless.

Despite government imposing a five percent excise duty on airtime with effect from September 1, 2014, Potraz has said mobile network operators should not increase tariffs above approved levels as the excise duty would be recovered from the current chargeable rates.

 

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