Econet reverses tariff reduction, but still under probe

ECONET WIRELESS might have complied with the regulatory authority directive against slashing voice call tariffs by more than half, but the company still faces investigation into the propriety or impropriety of its conduct prior to the directive.

Potraz acting director-general Mr Alfred Marisa said in an interview yesterday that Econet Wireless had shelved its decision to slash voice call tariffs by 60 percent as directed, but the authority would still investigate the period it advertised for the reduction without approval.

"They have (complied with the directive), but we are still looking into the period they advertised outside what we had approved," he said.

The regulator argued that while Econet had the discretion to increase or reduce tariffs the changes had to be approved by Potraz.

"What they were advertising outside our approvals is what we rejected," Mr Marisa said.

Potraz had also argued that Econet's Buddie Zone tariffing system was a promotion, which had outlived the approved three- month trial period.

Potraz contends Econet breached provisions of the Telecommunications Act when it advertised, over a fortnight ago, that it had with immediate effect, cut voice call tariffs across networks and also wanted the Buddie Zone "promotion" shelved.

When the regulator directed that the reduction had not been sanctioned Econet argued that Potraz had strayed off its jurisdiction while also arguing Buddie Zone was not a promotion but an integral feature of its tariffing system.

Econet argued that Potraz's role was regulating the industry to ensure fair competition among operators and further claimed the regulator overstepped its limits and encroached into operational issues.

The mobile phone operator said the directive against the reduction of voice call tariffs was a result of misunderstanding with the regulator, adding that it would engage the regulators to clarify areas of divergence.

Econet Wireless chief executive Mr Douglas Mboweni declined to comment saying the disputed issues were currently under discussion.

The firm argued, earlier, that tariff increases or reductions were an operational issue outside of the regulators' mandate and followed trends in the traffic cycle on an individual operator's mobile phone network.

"The matter is currently subject to ongoing discussions and therefore there are no material developments to update," Mr Mboweni said.

Earlier, Mr Mboweni had indicated that while discussions would be held to discuss the propriety or impropriety of the tariff reduction, Buddie Zone tariffing would not be stopped as it was a permanent aspect of Econet's tariffing system commonly known as dynamic tariffing.

The telecommunications regulatory authority said the promotions that the country's biggest mobile operator is now running have been approved.