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International telecommunications tariffs to increase
MISA-Zimbabwe
February 20, 2007

The Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) is set to increase tariffs of all international calls originating in the country.

These developments come in the wake of a blackout in international calls originating in the country. Mobile phone operators last week warned of the termination of international calls originating from the country.

The operators, currently facing viability problems due to unsustainable tariffs gazetted by the Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) have said they were forced to cut all telecommunications from the country. They contend that tariffs gazetted for international communications are not competitive, economically viable and commensurate with regional rates.

POTRAZ is considering concerns raised by mobile operators on the need to increase rates charged on international calls due to termination rates. The low tariffs they gazetted have led subscribers to take advantage of the situation and make long international calls.

Consequently, Zimbabwe is a net payer of termination rates, currently pegged at $US0.15 a minute. These companies are unable to break even and sustain international calls originating from the country.

Background
These new developments come in the backdrop of persistent complaints by mobile phone operators, especially Econet, on the unreasonable charges for outgoing calls. This coupled with a regulation imposed last year by the government, mandating all mobile phone operators to use state-owned Tel*One as an international gateway has made their functions close to impossible.

The regulation was suspended after Econet and Telecel challenged it in court in light of the licenses that they were granted by POTRAZ. All mobile phone operators are allowed to have their own international gateways under Section 31 of the Posts and Telecommunications Act under which they are licensed.

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