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TelOne tariffs unsustainably low

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telone tariffs

telone anytimeYesterday, the state owned daily published an article titled “Low Tariffs Affect Parastatals Infrastructure”. You can find it here. The article mentions Air Zimbabwe, Agribank, National Oil Company of Zimbabwe, Cold Storage Company, Grain Marketing Board and TelOne in a list of state companies that registered interim losses of up to 46.4 million to October last year.

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We’ve written about TelOne rates here before. So it’s really no surprise that TelOne is on this list. TelOne offers the cheapest calling rates in Zimbabwe. Of course there’s the traditional ‘trunk calls’ thing that fixed operators are clinging to; you pay more for trunk calls depending on the physical distance to the call destination.

Still the tariffs still appear significantly low that the mobile operators. Here’s the TelOne tariff sheet:

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telone tariffs

In comparison, all the mobile networks currently charge US 23 cents for calls within the network and US 25 cents for calls out of the network. All except Telecel that is; Telecel scrapped the extra cost of out-of-network calls in February.

We’re not complaining here, but this says something about communication costs in Zim. While many people have accused mobile network operators of overcharging, what do we make of it if those charging ‘reasonable’ rates are failing to maintain their infrastructure.


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10 thoughts on “TelOne tariffs unsustainably low

  1. While it makes no sense to charge fees that will not enable you to maintain your infrastructure this must not be used as a basis for overcharging as the mobile operators are doing especially on data services. Their service delivery is not commensurate to their charges.

  2. they are hiding behind a finger, if the rates are unsustainably low, how did they arrive at them in the first place. if they were arrived at by a sane person, it is likely that other factors might be at play here. (if they are truly not sustainable……those who set them are domp>>).

  3. “While many people have accused mobile network operators of overcharging what do we make of it if those charging ‘reasonable’ rates are failing to maintain their infrastructure.” Bit of a “narrow” statement.
    About “those charging ‘reasonable’ rates” do we not also consider their management track record too?!

  4. When you lot actually understand what it costs to run and maintain an infrastructure then come with all your moans and groans about how expensive things are. Until then shut up. I am so sick and tired of hearing people complain about how expensive things are and that it costs so much less in this country or that country. Do some actual research, suppress your emotions (ahem) and then make an educated comment. Pay peanuts and get monkeys!

  5. Those tariffs are quite competitive compared to other regional fixed telecoms providers. You cant really compare the tariffs for mobile and fixed operators, it cost more to maintain the infrastructure for mobile than for fixed lines. Telone being a parastatal, they might have the same disease as all other parastatals…….maladminstration,Corruption,Abuse etc!

    1. yeah wonder u are right , there isn’t much to spend on , when it comes to landlines. therefore there shouldn’t much to charge .

  6. yeah wonder u are right , there isn’t much to spend on , when it comes to landlines. therefore there isn’t much to charge .

  7. so are the herald and you guys attributing the losses to low tarrifs? let’s get the full picture on the cost structure of the company before making an argument. I won’t be surprised that other administrative costs are bringing down the companies.

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