More Africa NewsZimbabwe plans third rate hike for telecom services

January 21, 2020by myles

The mobile telephony operator Econet Wireless Zimbabwe, leader in the national telecoms market, announces a potential further increase in the price of telecom services. The company says it is currently in talks with the Zimbabwe Post and Telecommunications Regulatory Authority (POTRAZ).

“The company, in collaboration with other players in the sector, continues to collaborate with POTRAZ in order to return to a pricing regime that will guarantee the continued viability of the sector as well as the maintenance of quality of service standards,” said Econet. in a press release.

Since the second quarter of 2019, Zimbabwe has evolved in an inflationary economic environment which continues to erode the prices of goods and services. The telecoms sector has already made two tariff adjustments to maintain the profitability of telecom operators.

In April 2019, the first price increase took place. It was around 23%. The second price increase occurred in October 2019, this time around 95.39%. Decided according to POTRAZ, just like the previous one, taking into account the costs of providing services, market trends, economic fundamentals and the economic power of the populations.

According to Econet Wireless Zimbabwe, the decay of the national economic environment is shaking the national telecoms sector at various levels, not just among consumers. The multiple power cuts that force telecom companies to use generators more, in a context of rising fuel costs, have also inflated operating costs.

Source: Agence Ecofin

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