The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) recently gave operators the green light to adjust tariffs after the ZiG devaluation.
State run telecommunications firm, NetOne was first, followed by its peers, Econet Wireless and Telecel.
Apparently, POTRAZ sets tariffs using an index which looks in the costs that telecommunications firms face in order to provide the services.
The costs include bandwidth, network maintenance, staff costs and fuel moreso as the country struggles to generate enough electricity, others.
Be that as it may, the tariff hikes approvals is falling short in meeting the desired effect on the firms’ operations due to inflation, which is eating into their profitability.
A report by the World Bank earlier this year noted that inflation limits the firms’ capacity to invest”. The Bank implored the government to “introduce a flexible approach to price regulation.”
Zwnews
