News / National
No need to review Zimbabwe's mobile phone tariffs
18 Apr 2012 at 06:30hrs | Views
There will be no downward review of Zimbabwe's mobile telecommunications tarrifs after the Postal and Telecommunications Regulation Authority of Zimbabwe said there is no need for for the review of the charges being levied by mobile telecommunications service providers on their clients.
This was revealed in a feedback report that was compiled by the Competition and Tariff Commission on stakeholder recommendations on the socio-economic effects of public utilities.
Potraz was responding to allegations that some of the country's mobile telecommunications companies were registering super-profits due to high charges at the expense of users.
"The authority queried the accuracy of Recommendation 15, which states that Potraz needs to control the mobile telecommunications services providers because their profits are exorbitant.
"Profitability is not necessarily a sign of high prices, but doing the right things. The measure should be on economic profitability more than on accounting profitability.
"All tariffs in the telecommunications sector are regulated and they are almost the same for all service providers, but the levels of the providers' profitability are different. Just because a company has huge profits does not mean that it is charging high tariffs â€" issues of business strategies come into play," read part of the report.
Last year, consumers and other stakeholders in the telecommunications sector had proposed to the CTC a need to review downward mobile telecommunication charges.
Zimbabwe currently has three mobile telecommunications companies, namely Econet Wireless Zimbabwe, NetOne and Telecel Zimbabwe.
An earlier regional comparison carried out by Potraz showed that local mobile tariffs were generally competitive.
Zimbabwe's mobile tariff averages 24 cents per minute compared to the regional average of 29 cents per minute.
Charges for other mobile operators in the region per minute are as follows: Swaziland's MTN 38c, Mozambique's Vodacom 24c, Nambia's CellOne 20c, Kenya's Celltel 30c, South Africa's MTN 38c, and Cell C (also of South Africa) 33c.
This was revealed in a feedback report that was compiled by the Competition and Tariff Commission on stakeholder recommendations on the socio-economic effects of public utilities.
Potraz was responding to allegations that some of the country's mobile telecommunications companies were registering super-profits due to high charges at the expense of users.
"The authority queried the accuracy of Recommendation 15, which states that Potraz needs to control the mobile telecommunications services providers because their profits are exorbitant.
"Profitability is not necessarily a sign of high prices, but doing the right things. The measure should be on economic profitability more than on accounting profitability.
Last year, consumers and other stakeholders in the telecommunications sector had proposed to the CTC a need to review downward mobile telecommunication charges.
Zimbabwe currently has three mobile telecommunications companies, namely Econet Wireless Zimbabwe, NetOne and Telecel Zimbabwe.
An earlier regional comparison carried out by Potraz showed that local mobile tariffs were generally competitive.
Zimbabwe's mobile tariff averages 24 cents per minute compared to the regional average of 29 cents per minute.
Charges for other mobile operators in the region per minute are as follows: Swaziland's MTN 38c, Mozambique's Vodacom 24c, Nambia's CellOne 20c, Kenya's Celltel 30c, South Africa's MTN 38c, and Cell C (also of South Africa) 33c.
Source - potraz
