Can We Really Trust POTRAZ to Serve Our Best Interests?

In Zimbabwe’s telecommunications sector, POTRAZ is charged with protecting consumers, promoting fair competition, and ensuring that services are affordable and of good quality. On paper, it is the watchdog of the telecom sector. But some people wonder whether it actually prioritises citizens over the very companies it is meant to regulate.

The biggest concern is how POTRAZ is funded. Much of its money comes directly from the revenues earned by the telecom companies. This happens in several ways: contributions to the Universal Service Fund (USF), license fees, USF levy and other charges, which are all funded by money from telecoms companies. POTRAZ has collected over $120 million in the USF since 2009.

This creates a tricky situation. When a regulator depends on money from the companies it oversees, there is a risk of regulatory capture. This means the regulator may hesitate to punish or challenge operators too strongly, because doing so could reduce its own income.

Zimbabwe is not alone in facing this problem. Many southern African countries fund telecom regulators through levies on operators. Regional guidelines from organisations like CRASA and ITU encourage this approach, mainly to fund universal access to telecom services without burdening government budgets. While the idea is good in theory, in practice, it can create bias. Regulators may end up with unspent funds, or they may enforce rules less strictly to avoid upsetting the companies that fund them.

For POTRAZ to truly act independently, funding reforms are necessary. This could involve receiving funds from the government or finding other revenue sources so the regulator does not depend on telecom operators. Until this happens, it is hard to take the regulator seriously when it comes to pursuing the best interests of consumers.

While POTRAZ has the mandate to protect the public, its funding structure creates a conflict of interest. This makes it difficult to fully trust that the regulator will always prioritise consumers over telecom companies.