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Economic commentator, Tinashe Murapata, has raised concerns about Econet Zimbabwe subsidizing data for Zimbabweans, stating that it may not be sustainable in the long run. He questions how long Strive Masiyiwa, the founder of Econet, will continue this subsidy. Murapata suggests that if Econet faces challenges, it could end up like Telecel.
<blockquote>
GOZ owns Netone, Telecel, Telone which if data was a public good for the least and most vulnerable of our society then GOZ entities should happily subsidize the citizens. After all they didn’t even pay licence fees. Why is GoZ targeting Econet? What are we missing? 
The Regulator has failed. A private company like any other sector must not be subjected to price controls and abuse. The regulator has new swanky offices while the industry is slowly dying. Did they force suppliers to contract at prices sub-inflation? Why is a local investor, certainly the largest and Zimbabwe’s best entrepreneur subjected to such malice? 
Econet is subsidizing data for Zimbabweans. For how long can they do that? Strive Masiyiwa is now a billionaire in spite of Zimbabwe. How long will his patience last? Are we going to be happy when Econet becomes another Telecel?
</blockquote>
Telecel Zimbabwe, a mobile network provider in Zimbabwe, has been facing a lot of problems recently. The company has had a hard time with money and has lost customers to other companies. People are not happy with the quality of Telecel’s network and services. There have also been legal issues and arguments about who owns the company. These problems have made it difficult for Telecel to do well and compete with other mobile network providers in Zimbabwe. 
He speaks as the nation is panicking after mobile network providers doubled data tariffs. The <a href="https://www.pindula.co.zw/Postal_and_Telecommunications_Regulatory_Authority_of_Zimbabwe/">Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ)</a> gave approval for telecommunications companies in the country to double their tariffs in the local currency (ZWL). However, the tariffs in US dollars remain the same. Economic factors such as currency stability, electricity prices, and fuel costs have fluctuated significantly, leading to the need for a review of the local currency tariffs for telecommunications companies, <a href="https://www.chronicle.co.zw/potraz-grants-telecoms-companies-two-fold-zim-dollar-tariff-increase/">the Chronicle</a> cited industry experts. The move by POTRAZ is meant to support the struggling telecommunications sector. This is the third increase this year due to the local currency losing value against the US dollar, <a href="https://www.newsday.co.zw/business/article/200018605/potraz-doubles-voice-data-tariffs">NewsDay</a>‘s Belinda Chiroodza reported. The latest adjustment was made because the currency depreciated by 444% since April. Telecommunications providers raised prices to ensure their services remain valuable. According to <a href="https://www.pindula.co.zw/Gift_Machengete/">Gift Machengete</a>, the Director-General of Potraz, the tariff changes were determined based on the Telecommunications Price Index. He stated:
<div class="in_article">
<blockquote>
The last computation for the sector was done in February 2023. At that time, we were using the July to December 2022 post-information. Now, the changes in the Telecommunications Price Index are used to review tariffs, and we did that in February and April 2023. At that time, we produced the tariffs of ZWL$94.41 for voice, ZWL$14.93 for data per megabyte, and ZWL$19.41 for SMS. These tariffs are no longer viable and fall well below regional average tariffs.
</blockquote>
There are some people who believe that Econet, the company founded by Strive Masiyiwa, is trying to block competition in Zimbabwe in order to make more money. They say that if other international companies like MTN were in Zimbabwe, they would have left because of the difficult operating conditions. Many international investors and brands have already left the country, including Telecel’s international partner.
Ranga Makwata says if a company like Starlink comes to Zimbabwe, they would leave because of the low tariffs and government price controls. Econet recently had a rights issue to pay off its debts, even though they have invested a lot of money in the country without getting a return. Others said it’s sad that Zimbabweans have a choice between public and private hospitals for life and death matters, but private healthcare can set their own prices while the ICT sector cannot.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>
</div>

Pindula News

Tinashe Murapata: Are We Going To Be Happy When Econet Becomes Another Telecel?

The <a href="https://www.pindula.co.zw/Postal_and_Telecommunications_Regulatory_Authority_of_Zimbabwe/">Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ)</a> has prohibited mobile service providers from hiking their tariffs in United States dollars (US$). The regulator recently <a href="https://www.pindula.co.zw/2023/10/27/potraz-allows-telecoms-companies-to-double-tariffs-in-zimbabwe-dollar/">approved new tariff thresholds in the local currency</a> due to the depreciation of the Zim dollar, but stated that the US dollar remained stable.
Any service providers who violate this directive will be fined, said POTRAZ director-general Gift Machengete in a statement. Read the statement in part: 
<blockquote>
The Postal and Telecommunications Regulatory Authority of Zimbabwe recently approved new tariff thresholds for telecommunication services.
The new tariff thresholds are applicable to services denominated in Zimdollar, which is the currency to which all tariffs for telecommunication services are pegged.
</blockquote>
Dr Machengete announced that service packages priced in United States dollars (US$) would not be adjusted because the foreign currency has remained relatively stable. Machengete warned that any service providers who increase their US$ prices would be charging unapproved tariffs and could face fines.
The recent tariff hike sparked complaints from Zimbabweans who found the data charges unaffordable. However, Machengete claimed that Zimbabwe has the cheapest data tariffs in the region. He refuted reports that Zimbabwe has the most expensive data tariff in the world, stating that the country actually has the lowest data tariff in the Southern African Development Community (SADC) region. He said:
<blockquote>
Finally, we continue to come across posts purporting to draw evidence from a UK [United Kingdom] website, that Zimbabwe has the most expensive data tariff in the world at US$43,75 per gigabyte (GB).
We reiterate that this is not only false, but misleading and malicious. As a matter of fact, and contrary to that report, Zimbabwe has the lowest data tariff in the Sadc region, with an out-of-bundle tariff of ZWL$14 930, which translates to US$3,21 per GB at the September 2023 official exchange rate, while the Sadc average is US$4,60.
</blockquote>
After receiving public complaints about the tariff increase, the Minister of Information and Communication Technology, <a href="https://www.pindula.co.zw/Tatenda_Mavetera/">Tatenda Mavetera</a>, stated that <a href="https://www.pindula.co.zw/2023/10/27/ict-minister-says-ministry-and-potraz-addressing-recent-increase-in-data-charges/">her ministry is collaborating with POTRAZ</a> to address the issue.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

POTRAZ Prohibits USD Tariff Hike, Adds That Zimbabwe Has The Lowest Data Tariff In SADC

Econet Wireless Zimbabwe is set increases voice, Data, and SMS tariffs and bundle prices with effect from 20 April 2023.
Econet, which is by far the country’s largest mobile network operator (MNO) by subscriber base, has notified its customers about the impending tariff adjustment.
A notice published on the company’s social media pages this Wednesday reads:
<blockquote>
Dear Customer, This serves to notify you of the planned changes on our Voice, Data, and SMS Tariffs and Bundles Prices effective Thursday, 20 April 2023.
To access Voice and Data bundles, dial *143#
To Access SMS bundles, dial *140#
</blockquote>
This comes after the Postal and Telecommunications Regulatory Authority (POTRAZ) approved tariff increases in February and April.
State-owned mobile network operator NetOne increased tariffs on 7 April 2023.
Telecommunications companies in Zimbabwe face various challenges that affect their operations and profitability.
These include a complex and often unpredictable regulatory environment, high inflation rates, currency fluctuations, shortages of foreign currency, frequent power outages, and fraud and cybercrime which has led to financial losses.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Econet Announces Planned Tariffs Hike

State-owned mobile network operator NetOne has notified its customers it will increase tariffs tomorrow, 7 April 2023.
NetOne made the announcement through a statement posted on its social media pages this Thursday. Reads the statement:
<blockquote>
Dear Valued Customer, Please be advised that we are reviewing our Data, Voice, SMS and Out Of Bundle tariffs with effect from 7 April 2023.
To view all new tariffs, please dial *171# from the 7th of April 2023.
</blockquote>
This comes after the Postal and Telecommunications Regulatory Authority (POTRAZ) approved tariff increases in February. POTRAZ stated that another increase would be implemented in April.
In a statement to clients in February, Liquid Intelligent Technologies said POTRAZ had granted telecom companies the greenlight to hike tariffs by 50% that month and another 50% tariff increase effective on 1 April 2023. It said:
<blockquote>
This notice serves to inform you that the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has approved an industry-wide 50 percent tariff increase with immediate effect and another 50 percent effective on 1 April 2023 for products and services.
</blockquote>
The high rate of inflation, prolonged power cuts and a volatile exchange rate have pushed operation costs forcing companies to push the costs to consumers.
More: <a href="https://news.pindula.co.zw/">Pindula News</a>

NetOne Hikes Tariffs Effective 07 April 2023

The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) says it will relocate 22 base stations (boosters) to rural areas to increase internet access in remote areas.
POTRAZ is using Universal Service Funds (USF), a contribution by all telecommunications operators in the country, to promote internet access in marginalised areas.
Presenting the Postal and Telecommunications 2021 fourth quarter sector performance in Harare on Tuesday, POTRAZ director-general Gift Machengete said:
<blockquote>
We are going to relocate about 22 base stations to some rural areas to promote internet penetration in the rural areas.
We have given schools computers and we are paying bandwidth for them, especially now that we have been struck by the pandemic.
</blockquote>
While the generality of Zimbabweans considers current data tariffs too high and unaffordable, Machengete said local data tariffs are comparable to regional countries. He said:
<blockquote>
Our data tariffs are not out of the world. They are actually comparable with other countries in the region. We are lower than a few of our colleagues in the SADC region.
When we look at South Africa, the problem is the value of the Rand is quite stronger than ours so at the end of the day it appears that the tariffs are high but it’s their disposable income that is higher than ours.
The same applies to Botswana, Mozambique, Zambia and Malawi also have higher disposable incomes, making their data appear cheaper than ours.
</blockquote>
Data usage doubled in 2021 compared to 2020, mostly as a result of the COVID-19 lockdown which forced businesses and education institutions to rely more on the internet.
According to POTRAZ, in the final quarter of 2021, Netone grew its market share subscribers from 30.7% to 31.4% while Econet’s share fell marginally from 65.1% to 64.9%.
Telecel’s market share shrunk further, from 4.2% to 3.7%.
<h4>More: <a href="https://www.newsday.co.zw/2022/04/potraz-targets-rural-internet-access/">NewsDay</a></h4>

POTRAZ Targets Increased Rural Internet Access

Data tariffs will likely go up again in the near future after the Postal and Telecommunications Regulatory Authority (POTRAZ) said that changes in the Interbank market affect data pricing.
The interbank market rate has been volatile since it was introduced in February with the US dollar now trading at close to RTGS$6, while it was 1:2.5 when it was introduced.
POTRAZ director general, Gift Machengete, in an interview with New Zimbabwe Business recently, revealed that Mobile Network Operators (MNOs) are pushing for an upward review of data tariffs. He said:
<blockquote>Rates on the Interbank market affects the costs and they were taken into consideration when the tariffs were increased.
It was around 3.5 and the current shifts which have seen the rates going higher than five times are being looked into though there are no specific timelines to determine the outcomes.</blockquote>
MNOs raised data and call tariffs at the beginning of April after the government abandoned the fixed rate of 1:1 between the US dollar and the local currency, the RTGS Dollar.
Appearing before a parliamentary committee in May, Machengete denied claims that internet data and call tariffs are too high in Zimbabwe when compared to regional countries. He insisted that local tariffs compared favourably with regional averages.
<h4>More: <a href="https://www.newzimbabwe.com/potraz-considering-data-tariff-hikes-in-line-with-new-interbank-rates/" rel="noopener noreferrer" target="_blank">New Zimbabwe</a></h4>

Mobile Network Operators Pushing For Data & Call Tariff Hikes

At first, the table Econet sent out to publications said they were going to be charging $0.038 per second which translated to $2.28 per minute.
However, Econet made a typographical and mathematical error. They are actually charging $0.0036 per second which translates to around $0.23 per minute. They have officially sent a revised table with a more accurate position.
Thus, the correct position is that from 1 April 2019, Econet will be charging $0.23 per minute, NOT $2.28 per minute.
In order to keep everything in proper context and avoid confusion, we have kept the earlier article (with Econet’s error) in block quotes below:
<blockquote>Econet Wireless has announced new tariffs for voice calls. It has split its billing into per second billing and per minute billing.
The assumption is that customers will be given the option to choose what they want, whether to be billed per minute or per second.
Econet will now be charging $0.22 per minute ($0.21257). It’s not too far from where tariffs used to be. However, per minute billing means that even if your call lasts for 10 seconds, you will still pay the 22 cents.
The new tariff increase is with effect from April 1, 2019.
POTRAZ has not yet issued a statement over the move by Econet, as it is issued a directive last week that MNOs should keep the tariffs at the same levels.</blockquote>
<h4>Related:</h4>
<ul>
<li class="entry-title">
<h4><a href="https://news.pindula.co.zw/2019/03/27/econet-restores-data-bundles-lost-during-internet-shutdown/" rel="noopener">Econet Restores Data Bundles Lost During Internet ShutDown</a></h4>
</li>
<li>
<h4 class="entry-title"><a href="https://news.pindula.co.zw/2019/03/27/mnos-clash-with-potraz-over-tariffs/" rel="noopener">MNOs Clash With POTRAZ Over Tariffs</a></h4>
</li>
</ul>
<h4>More: <a href="https://www.techzim.co.zw/2019/03/econet-increases-tariffs-you-will-pay-up-to-2-28-per-minute/" rel="noopener" target="_blank">TechZim</a></h4>

UPDATED: Econet To Raise Tariffs, Calls Will Cost $2.28 Per Minute

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