Potraz pushing mobile networks to share agents

The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) is pushing mobile phone companies to share banking agents as Government seeks to encourage stiffer competition that will lower the cost of mobile banking services, a Cabinet minister has said. Mobile banking has in the last half decade helped improve access to banking services by people previously financially excluded.But service providers especially mobile phone operators have during the period focused more on building separate agent networks, with some alleged to be blocking other players who want to venture into the field from using agents they will already have recruited.

Econet, the biggest player in the mobile telecommunications field, has come under constant criticism for allegedly enforcing agent exclusivity.

Agents are third party providers who offer services on behalf of the telecommunications companies on a commission basis.

But Information Communication Technology, Postal and Courier Services Minister Supa Mandiwanzira said agent sharing will soon be the order of the day.

“In order to support and promote mobile money services and to alleviate the (cash) crisis we are facing, we have told Potraz to engage all the players in the industry to make sure that there is no exclusivity on agents,” Minister Mandiwanzira said.

“No operator must say this is my agent, I identified them and therefore I do not want any other mobile money agent using my agent.

“We believe that they must compete in terms of the service and not necessarily in terms of the agents.”

Minister Mandiwanzira said the move was “in the spirit of infrastructure sharing” which government is trying to promote among businesses in the industry.

“This promotes the agent as well because they can make more money,” he said, adding it would eventually result in a reduction in service charges to users. While lauded for its convenience, mobile banking usage has been criticised for coming at a premium.

Econet, at over 50 000 agents countrywide by far leads its peers, and says it has invested over $15 million in the past four and half years building its agent network. – New Ziana.