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NetOne’s illegal product and the penalties it could face

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NetOne, ZImbabwean telecoms,

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Recently NetOne released a mobile data bundle product called “The One“.

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The removal of the product raised a lot of suspicion as to why the MNO would remove a product that was arguably the best mobile data product available on the market at that time.

We sought clarification from NetOne to no avail.

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So, we took it upon our regulator, POTRAZ, to shed some light on the issue, to which they responded:

The product had been launched without approval and it is the regulator’s job to ensure that only legally approved products are offered to the public

The regulator set the record straight, NetOne had an illegal product and the regulator, told NetOne to pull it off the market.

What was surprising was the public’s reaction to us sharing this information. Many people fingered the regulator as the bad guy, working in cahoots with the Government to deprive the public of an opportunity to access affordable Internet.

Emotions apart, POTRAZ was just doing their job, but it seems like they still have a lot more work to do.

Our interest in this issue came about from POTRAZ outlining that the product was not legal, which we would assume makes it illegal?

From what we know, in any “system”, an illegal action is followed by some form of penalty from the regulating authority.

Why then has it not been penalised? and if they have, why hasn’t it been made public knowledge?

At this stage neither NetOne or POTRAZ have made an effort to communicate what has happened or will happen to the public.

Our interest in this issue led us to dig a bit deeper, and that is when we came across a POTRAZ legislation through a statutory instrument(SI).

We are not legal experts, so we can only assume that what we say is the correct interpretation of the law.

To our understanding, the SI clearly defines the course of action POTRAZ is meant to take on such an instance and the penalties they should enforce on the guilty parties.

We sought clarity from POTRAZ on what action they will take on NetOne to no avail, they are still yet to respond.

Either way, after consulting some lawyers these were our findings:

POTRAZ has a Statutory Instrument 162 of 2008 on Penalties which outlines the regulator’s course of action in dealing with the different operators they handle under their mandate.

On LICENSED PUBLIC MOBILE CELLULAR TELECOMMUNICATION SERVICES a penalty is placed on a ” percentage of gross monthly turnover for public networks and US$ for private”, these were the penalties we found that may be tied to this issue:

  1. Offering services not approved by the Authority – 10% (within a period of 5 days)
  2. Implementing unapproved tariffs – 25% (within a period of 5 days)
  3. Publishing unapproved tariffs – 15% (within a period of 5 days)

Our interpretation of this is that NetOne is liable to all 3 of these fines.

The SI also clarifies what POTRAZ is meant to do when it became aware of this issue but we will cover that in a separate article.

So with penalties already set by the regulators SI why have they not enforced it?

Both parties seem mute on the issue, which points at some kind of protection and elements of favouritism.

NetOne pulling the product off the market immediately after the regulator told them to shows that they were well aware of their infringement of the law.

It is like a cheeky child caught with their hand in the cookie jar, and drops the cookie immediately.

What would compel NetOne, with 20 years experience in the telecoms industry to just implement a product?

We understand that the public is not as interested in these issues because we all want cheap data, but there are some underlying issues that need to be addressed.

Tell us what you think about this.


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5 thoughts on “NetOne’s illegal product and the penalties it could face

  1. Potraz and NetOne all belong to Zanu PF since there is no separation between Zimbabwe government and political party Zanu, they should be separation, but its not there!

    There is NO way Potraz will level any charges against NetOne, all it will take is someone high up the Zanu Pf table is a phone to both of them to play nicely with each other and all the noise will go away, quiet like nothing ever happened.

    Bvute is now at Potraz, all it takes to freeze any action against NetOne is his history at Zimbabwe Cricket and Metbank, his history at Air Zim and Metbank, and recently him and Msipa with regards to Crowhill and the case is still in the courts!!

    Aparently Bvute is close buddy of Mandiwanzira, considering Mandiwanzira’s involvement with NetOne, it is in their both interest to keep Potraz and NetOne in good harmony.

  2. Di you guys reach out to NetOne for comment? Maybe they wanna deny POTRAZ’s charge that they didn’t seek approval? I don’t think its enough to say that because they pulled it immediately it means they knew it was illegal. I’d love to see an actual statement from them.

  3. the delay in resolving this issue is pushing net1 customers to other network operators whose $ a day data bundles are more than 200mb as compared to net1’s 17mb at the moment. I would say the 2 state institutions r probably helping push net1 competitors network sales figures upwards (sim cards, voice & data services etc.) since price of data is key these days. I don’t think they care about the effect of this decision on the business as shown by their attitude towards resolving this issue. Time is money- known from ages ago

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