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HARARE – State owned fixed telecommunications services provider TelOne has said it has started charging an interest of 3 percent on all overdue accounts as it seeks to recover a huge debt from subscribers. In a statement, TelOne urged debtors to settle their bill arrears to avoid litigation.
“TelOne would like to advise that a 3 percent interest is now being levied on all overdue accounts from November 2017 in accordance with our contract,” it said.
It added: “Clients are encouraged to timeously settle bills to avoid the inconvenience of interest accumulation and litigation.”
Originally a fixed telephone provider, the business has in the past few years diversified to other income generating streams as competition for voice hotted up with introduction of other cheaper and newer technologies.
Over the top services such as WhatsApp, Skype and Viber are eating into the company’s share of revenue previously generated from voice calls where it was a dominant force.
TelOne recently said it would convert some of its subscribers to the prepaid system as it struggles to recover a huge debt. The company is owed millions by its subscribers which it said it would use aggressive methods to recover.
TelOne inherited legacy loans of $360 million after the unbundling of the then Postal and Telecommunications Cooperation (PTC) in 2000 which has haunted it since then. – New Ziana
Online Reporter