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Econet,Telecel
seek court order to block new regulation
The Herald
(Zimbabwe)
November 06,
2006
http://www1.herald.co.zw/inside.aspx?sectid=11033&cat=1&livedate=11/6/2006
GOVERNMENT decision to regulate payment
for incoming and outgoing international telephone traffic comes
under challenge as Econet Wireless and Telecel, the two private
mobile phone service providers, today seek a High Court order blocking
control of the gateway system.
The Government
recently introduced a statutory instrument to stop the multi-gateway
system, which allows many avenues for both incoming and outgoing
international traffic, to ensure accountability by private operators
in the industry.
The regulation
was supposed to start operating last Wednesday.
However, Econet
approached the High Court last week seeking an interim order against
the Government, pending its application challenging the constitutionality
of the new regulation to be filed at the Supreme Court within two
weeks.
On Friday, Justice
Lavender Makoni deferred the hearing of Econet’s urgent chamber
application to today after it emerged that Telecel had made a similar
application.
Both cases —
in which the Postal and Telecommunications Regulatory Authority
of Zimbabwe, the Minister of Transport and Communications, Cde Christopher
Mushohwe, and fixed network operator TelOne are listed as respondents
— would be heard today by Judge President Rita Makarau.
The two mobile
phone service providers contend that in its effect and implementation,
the regulation is demonstrably biased and favoured a competitor,
TelOne.
The Government,
the two companies argue, has a substantial interest in TelOne.
The regulation
was promulgated in March this year to prescribe the minimum charges
for international voice traffic terminated by relevant licensed
telecommunications operators.
Three termination
rates for fixed, mobile and mobile-via-fixed are prescribed for
international voice traffic terminating on either fixed or mobile
networks. These are US$0,07, US$0,20 and US$0,15 respectively. The
two rates for traffic to the mobile network means that traffic will
follow the least cost route, which, in this case, is mobile-via-fixed
at US$0,15.
This, according
to Econet and Telecel, would render them and other mobile operators’
gateways redundant, resulting in them suffering drastic reduction
in revenue from incoming traffic.
Ms Beatrice
Mtetwa, of Mtetwa and Nyambirai, appearing for Econet, said Econet’s
licence was granted in a court order which specifically authorised
it to operate a gateway for both incoming and outgoing traffic.
Telecel managing
director Mr Rex Chibesa, in his affidavit filed with the High Court,
contends that the regulation was invalid because it contravenes
the parent Act.
He said the
fixing of the rates fell outside the scope and power of the minister
as contemplated and provided by the Postal and Telecommunications
Act.
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