Potraz approves two-fold tariff rise for telcos

The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has given its approval for a twofold increase in the tariffs of the country's telecommunications companies when billed in Zimbabwean dollars (ZWL). The tariffs in US dollars will remain unaffected.

This price adjustment comes after nine months since the previous review of ZWL tariffs in February 2023. During this period, several economic indicators, including the stability of the currency and the costs of electricity and fuel, experienced substantial fluctuations, necessitating a reevaluation of telecommunications tariffs in ZWL.

In the time since the last tariff review, the official exchange rate witnessed a depreciation of over 800%, with the Zimbabwean dollar going from ZWL687 to ZWL5,670 to the US dollar.

All three of Zimbabwe's mobile telecommunications companies, namely Econet, NetOne, and Telecel, have announced new tariffs for voice calls, data, and SMS starting this week. The new rates represent a doubling of prices compared to the pre-increase period.

In a notice to its customers, Econet Wireless Zimbabwe stated, "Dear customer. We are reviewing our ZWL voice, data and SMS prices, effective 24 October 2023."

Similarly, Telecel Zimbabwe informed its customers that they would be reviewing their ZWL voice, data, and SMS prices starting from 25 October 2023.

State-owned operators NetOne and TelOne have also disclosed similar price adjustments.

POTRAZ justified the tariff increase as necessary to enable mobile operators to maintain and enhance their services. The regulatory authority further pointed out that the new tariffs would still be below the regional average.