Page 149 - SAMENA Trends - November-December 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

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2520MHz-2525MHz/2640MHz-2645MHz (USD5.603 M) (December 17, 2019) commsupdate.com
2525MHz-2530MHz/2645MHz-2650MHz (USD5.603 M)

The head of the Postal and Telecommunications computed in consultation with all operators. “In view
Regulatory Authority of Zimbabwe (POTRAZ) has of the foregoing, and guided by the Act, all public
said that new players would be welcomed into the switched and mobile operators may adjust their tariffs
country’s mobile market as this would help to increase in line with the above thresholds for approval by the
competition and drive down costs for end users. A Authority,” reads Protraz’s circular number 4 of 2019.
Zimbabwe report citing ZBCtv, quotes Gift Machengete as saying: Following the approval, the country’s three mobile
‘We have not reached that point of over-saturation network operators Econet Wireless, Telecel and NetOne
because what we need are more players.’ The regulator reviewed upwards their voice, data, and SMS tariffs.
says it is accepting proposals from local and overseas Econet has increased its voice tariff with 98 percent to
investors. The country is currently home to one privately $0,963 per minute from $0,486 per minute in August,
owned cellco, market leader Econet Wireless, plus two while data and SMS prices have gone up to $0,1926
state-backed firms, NetOne and Telecel. The POTRAZ per MB and $0,2440 per SMS respectively. Telecel’s
chief did not specify whether the new players should be voice, data and SMS tariffs are now $0,95 per minute
mobile network operators (MNOs) or MVNOs. There are for Telecel to Telecel, $0,92 per minute for Telecel to
currently no MVNOs active in Zimbabwe. In December other networks, $0,19 per MB and $0,24 per SMS.
2018 POTRAZ spokesperson Baxton Sirewu said that NetOne $0,95 per minute for NetOne to NetOne, $0,92
the market could not support a new MNO, with a lack per minute for Netone and other local networks, $0,19
of available spectrum limiting how many players could data and SMS are now $0,24. Meanwhile, NetOne’s
operate effective networks. Even if a fourth network tariffs increased to $0,95 per minute for NetOne to
does not emerge, new investors could still enter the NetOne, $0,92 per minute for NetOne and other local
sector, with the government looking for a buyer for networks, $0,19 data and $0,24 for SMS in compliance
NetOne and its fixed line sister company TelOne. with the regulator. NetOne Marketing Communications
TeleGeography’s GlobalComms Database notes that Executive Director Dr. Eldrette Shereni said the new
Telkom and MTN Group of South Africa have both been tariffs were “in compliance with Potraz regulated
linked as potential bidders. (November 7, 2019) The Chronicle tariffs as per the circular 4 of 2019.” The new tariff
comes at a time most businesses are grappling with
The Postal and Telecommunications Regulatory increased cost of doing business and will also come as
Authority of Zimbabwe (Potraz) has approved an upward a shock to constrained consumers who were already
95.39 percent voice, data and SMS tariff adjustment battling with increased cost of living. The cost of
for both mobile and fixed network operators as energy, both electricity and fuel, has a huge bearing
previous tariffs were ravaged by inflationary pressures. on the operations of telecom operators as it is used to
According to Potraz, in a circular to operators, previous power base stations. Fuel went up by approximately
tariffs that were set in August 2019 have been rendered 12 percent on Monday this week while the Zimbabwe
“unsustainable” as the operating environment has Energy Regulatory Authority (Zera) early this month
further deteriorated due to inflationary pressures. approved a 320 percent electricity tariff increase to
Inflation pressures were elevated in the first half of 162,16 cents per kilowatt hour (kWh) to help Zesa
the year reaching 175,66 percent (year-on-year) and improve power supply. The country’s statistics agency
39,3 percent (month-on-month) in June 2019. While (Zimstat) recently released data showing that the Total
year-on-year figures are no longer being published, the Consumption Poverty Line (TCPL) for an average of five
month-on-month inflation has slowed to 17,7 percent persons per household stood at $2 192,00 in September
as at September 2019. “Accordingly, the authority 2019. The poverty datum line (PDL) represents the cost
has found it necessary to review tariff thresholds for of a given standard of living that must be attained if a
telecommunication services by 95,39 percent based person is deemed not to be poor.
on the Telecommunication Price Index (TPI) that was (November 1, 2019) The Herald
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News updates, Snapshot of Regulatory News SAMENA Countries, Regulatory News beyond SAMENA region and Wholesale News updates have been
obtained from sources, which we deem reliable. SAMENA Telecommunications Council is not liable for any misinformed decisions that the reader may
reach by being solely reliant on information contained herein. Expert advice should be sought.
149 NOVEMBER 2019