Government to set a minimum & maximum price on mobile internet in Zimbabwe

Posted by Read 12 Comments

Zimbabwe’s mobile data prices are set to have floor and ceiling prices as the government moves to protect subscribers as well as the industry.

While responding to a question on the lack of ceiling price on mobile data raised in Parliament recently, the Minister of ICT Supa Mandiwanzira explained how the review of high mobile data tariffs would be accompanied by a ceiling price in addition to the floor price.

A floor price sets a minimum price for a service or product while a ceiling price sets a maximum price.

At the beginning of the year, all mobile telecoms operators in Zimbabwe were compelled by the regulator, POTRAZ, to set a new minimum price for mobile data bundles and voice calls.

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There was a huge outcry after Econet Wireless, the country’s largest mobile operator complied and set new tariffs which were significantly higher than the floor price. The tariff increase was later reversed.

A ceiling price would ensure that operators set their tariffs below a price that would have been deemed as the maximum that can be charged for data. While the floor price mechanism was meant to protect the industry’s service providers ceiling prices cover the subscribers from price exploitation from operators.

What do you think should be the floor price and ceiling price for mobile data in Zimbabwe? Please comment below.

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12 Comments

  1. Gerald says:

    The biggest flaw with this country is the lack of desire for honesty. Econet bought data at less than 1c/Mb for years and sold it at 10c/mb. My understanding is that wholesale bandwidth has since gone down. Why don’t they switch focus to data provision like MNOs in other countries have done?

    1. Mercy says:

      You forget we do not have a “Business Minded Seldriven” Govnt or any Government Parastatal. If we did we all would be swimming in diamonds.

  2. muvig says:

    i agree with Gerald. reduce call charges, and create jobs so that there would be more buyers (airtime buyers) in the country. there is no way you can make more when most of the people can’t afford to put food on their table, what more calling at 15c/minute? only 6 minutes per dollar.
    if you make thing expensive, people would find alternatives, and once used to cheaper alternatives, it hard to return them back.
    remember these guys sometime back sold cell phones at $100 US dollars each, they have been reaping us for a long time, now its our turn.

    1. Langton says:

      I hope you wanted to say sim cards instead of cellphone? because selling a cellphone for $100 is not a bad deal at all1

  3. No To Controls says:

    If it doesn’t make sense for the government to set a minimum and maximum price for a loaf of bread, then it still doesn’t sense for the government to set a minimum and maximum price for data and airtime

  4. mudhara vachauya chete says:

    It will not work at all.They must stop that nonsense.It is a global trend that revenue of MNO through voice is continuously declining so they must not waste their time trying to play around with subscribers instead they must try to find other opportunities through all those services such as Whatsapp and Facebook .In fact regulation cannot protect revenue let those guys find their own ways of increasing their revenue.How can a government failing to raise money for civil servants salaries say it can help MNOs to increase revenue.That’s daylight dreaming

    1. Interested Party says:

      Quite true. Let the market forces act and innovation will follow. I still believe that because government views a decline in MNO revenue is detrimental to them considering Econet is paying their bills they will find a way to squeeze the last dollar out of every subscriber while trying to maintain their grip on free speech by allowing for pricing that is prohibitive to the common disgruntled man.

  5. Chimbonditanga uone says:

    If supa mandiwanzira failing to make things work he must simply resign and leave the office to others who have brilliant capacity to handle that shit.and they must stop telling us about the zanu government which is failing to create employment and empower Zimbabweans.that government’s services are no longer needed honestly.How can they muchly interfere in data charges .nxa kana zvichinetsa endai munobvunza zvimwe nyika kuti dzirikuita sei kuti zviite. This has nothing to do with parliament .

  6. follow says:

    we need a new minister and a new potraz

  7. nelson moyo says:

    Best to pray to Strive to only charge 1 US cent a minute and let us pay in bond notes

  8. wait says:

    at the end of the day thus is more about Tax Revenue. and PS econet sure you and gvt ha e whatever is going on but u choose you so please understand that I expect some level of consideration.

  9. KG says:

    Right idea, wrong approach. Government should provide us cheaper data through Net One and Telecel. Simple.

Comments are closed.