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International telecommunications blackout looms
MISA-Zimbabwe
April 10, 2007

In a move that threatens to cause a blackout in the telecommunications sector, Zimbabwe's mobile phone operators, Econet, Net*One and Telecel have said they will start billing all outgoing international calls in foreign currency. The move will also see Tel*One, the sole fixed telephone network provider charging all outgoing calls in United States Dollars.

Mobile phone companies, which have been engaged in a rate wrangle with the Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), maintain that they are unable to pay the termination rates charged in United States dollars, and have accumulated many debts.

Chair of the Telecommunications Operators Association of Zimbabwe Douglas Mboweni is quoted as having stated that currently it costs ten times cheaper to make an international call from Zimbabwe than anywhere else in the world and as a result most international calls now emanate from Zimbabwe. Consequently, these companies have to pay more termination rates than the corresponding countries.

POTRAZ has set the tariffs using the official exchange rate of Z$250 against each US$ a rate which has become unsustainable for most exporters and service providers.

Zimbabwe is currently facing a foreign currency shortage, making it virtually impossible for subscribers to pay their telephone bills in foreign currency.

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