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Mobile operators ordered to reduce high tariffs

by Business reporter
23 Oct 2014 at 06:15hrs | Views

LOCAL Mobile operators have been ordered to reduce voice tariffs from 23 cents per minute to 15 cents with effect from December 1, 2014.

The directive the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) is part of the implementation of a new pricing model known as the Long Run Incremental Cost presented in June this year.

According to the Chronicle today Potraz 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," an official from Potraz was quoted as saying.

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.

Source - Herald