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Inflation Worsens Tariff Charges

Telecom

Inflation Worsens Tariff Charges

There are talks that this week will see a rise in tariff charges from the countries’ service providers due to the continued weakening of the Zim dollar. Techunzipped news has learned.

Most Zimbabweans are already suffering in attaining data bundles from the current prices hence the rise in data prices is going to worsen their lives.

“Specifically, rapid depreciation of the local currency and the levels of tariff increases approved, which continue to lag behind inflation, has affected the ability to meet the (business’) foreign currency-denominated obligations, especially spares for equipment and service level agreements and support,” Telecel said in a recent statement.

Competitors, Econet and NetOne have also highlighted that current tariffs are now sub-economic.

In its latest trading update, Econet said: “Our tariff continues to lag behind inflation and given the rapid local currency depreciation since February 2019, the tariffs are now at sub-economic levels.”

Econet, together with other industry players, said it will continue to engage with Potraz in an effort to adopt a tariff regime that will ensure continued viability of the sector as well as quality of service.

Mobile Network Operators (MNOs) last received a tariff review in October 2019 when their regulator, the Posts and Telecommunications Regulatory Authority of Zimbabwe (Potraz), awarded a 95,39 percent tariff increase.

At that time, Potraz said “the previous tariff schedule was no longer valid owing to continued cost escalations for operators”.

Yeukai is an ambitious and passionate journalist. She enjoys writing and reading about technology and has made it her number one priority. She has been practicing journalism for 5 years now. In her journey as a writer, she has written three novels so far.

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