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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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