POTRAZ releases statement on suspension of tariff increases, calls out Econet for double standards

Nigel Gambanga Avatar
POTRAZ, Zimbabwean Telecoms, Regulation in Zimbabwe, calls monitor, TTMS, Traffic Monitoring, tariffs

Zimbabwe’s telecoms regulator, POTRAZ, has issued its own statement regarding the suspension of data increases, notifying citizens of this action and giving an explanation for it.

In the statement, POTRAZ also called out “some Mobile Network Operators” for not taking ownership of the idea to introduce a floor price. Though not mentioned by name, the statement is directed at Econet, Zimbabwe’ largest mobile network operator.

Econet issued its own statement earlier today, telling subscribers that it felt their pain and that it had introduced the new tariffs in compliance with the regulator’s demands.

This was, however, in conflict with what POTRAZ had highlighted about the new data tariffs. The POTRAZ Director General, Dr Machengete pointed out that the MNOs had been consulted and that they were the ones that suggested the high tariffs in the first place.

Leaked information from POTRAZ’s meeting with the operators also supported this, showing how Econet had actually proposed the high tariffs.

You can read POTRAZ’s full statement below.

REGULATORY DETERMINATION 1 OF 2016 ON DATA FLOOR PRICES FOR VOICE AND DATA ON BUNDLED SERVICES

We refer to the above captioned Regulatory Determination on floor prices for voice and data bundled services and promotions which was issued by the Authority on 7 December 2016.

As the sector regulator, we are concerned and disturbed by the conduct, double standards, negative utterances and refusal to take ownership of the decision by some Mobile Network Operators (MNOs). It has become apparent to us that the service providers have decided not own up to the fact that they engaged the Regulator regarding declining revenues which were, according to them, threatening industry viability and service roll out. Infact the MNOs met prior to the issuance of this determination and proposed even higher floor prices through their collective voice, the Telecommunications Operators Association of Zimbabwe (TOAZ).

In its quest to ensure that consumers continue to enjoy quality telecommunication services and maintain the expansion drive towards universal access, POTRAZ positively received the pleas by Operators and eventually agreed to the introduction of a moderated floor price which as envisaged by the Authority would ensure both sector viability and continuous service provision to consumers.

It is clear that this decision has been met with consumer outcry, understandably so, given the current economic challenges. It is against this background that POTRAZ would like to advise consumers and stakeholders in general of its decision to withdraw Regulatory Determination No 1 of 2016 with immediate effect.

11 comments

  1. Tawanda

    Confusion at its best.Because in the afternoon I read Robert’s blog about this issue Interesting facts he raised that needs answered.

    https://wozatel.blogspot.com/2017/01/data-prices-drama-who-is-responsible_12.html

  2. Concerned

    I hear of leaked information, tipeiwo ka information yacho as it is tionewo akutivhara…….
    #hapana anopa kutora blame

  3. ini

    That “Leaked information from Potraz’s meeting” is just a paper typed by anyone, no logo, signature, stamp or even a Potraz rep in the meeting. Are there only 3 Telecoms players in the association…. where is Africom, TelOne etc??

    1. Tinashe

      Ayo haas ma MNO shamari ana TelOne avo, they’re are yet to use their mobile licence. Those leaked Minutes ndoo echokwadi manje, no MNO has denied that “yet”, if there is one please share the direct link here. Econet has been exposed, people had a tendency of just blaming POTRAZ without digging dip into the whole story. Yes i mean yes, our regulator is also wrong but if we were to put them on a scale how wrong they are, i tell you, Econet would tip the scale here.

  4. Langton

    I hate Econet but here I feel they have been sold a dummy by POTRAZ and other MNOs

  5. moyo

    No wonder why engineers have a very poor reputation in this country…all those POTRAZ engineers behaving like puppets and doing the bidding of mobile operators as if those are the only stakeholders…holding the millions of citizens to ransom.In Japan and elsewhere, engineers make cars etc to enhance people’s lives.In Zimbabwe engineers make ordinary people’s lives difficult.Unbelievable!!There could even be corruption tendencies involved in these decisions which honestly are irrational…If regulatory authorities don’t add value, they should be scrapped.

  6. Imi Vanhu Musadaro

    Potraz shouldn’t blame the operators, Potraz regulates operators, not the other way round. They could easily have rejected the floor pricing request given that they were aware of the “current economic challenges”. If no-one complained or people had praised the changes, for some reason, Potraz would be taking credit for the idea.

  7. Think Critically

    The question you need to ask is this, why is the entity supposedly representing the consumer, POTRAZ, setting minimum prices? Surely they should be setting a maximum price that completes their mandate to make it affordable to all and then let the MNOs compete thereby ensuring that we as consumers get a decent price. Another interesting question is to ask why put prices up when they are already, according to another article on this website, the third most expensive on the continent? To answer that you might start looking into the ownership of the MNOs and discover that a change in ownership occurred recently and then realise where the driver may be coming from…

  8. Robbed

    From the time it happened i only use econet as a very last resort. Their rates are out of this world. For example $1 gives you 8 minutes econet to econet only after buying a bundle as opposed to 15 minutes for netone including more than 4 minutes across the networks. Daylight robbery at its best.

    1. follow

      do netone have a license ?

  9. Anonymous

    Declining revenues, industry viability, bullshit. Econet needs a hefty fine.

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