Page 154 - SAMENA Trends - September-October 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

A committee has been established in Uruguay introduction of MNP, reviewing the numbering plan and
to prepare for the introduction of mobile number determining the costs. The move follows the approval
portability (MNP), which enables mobile users to of Law 19,889/2020 in July, Article 472 of which states
retain their number if they switch service provider. The that operators will be obliged to offer MNP under the
committee comprises representatives from a number guidelines provided by the regulator and that they
Uruguay of industry regulators, including the Regulatory Unit will also have to assume the costs of adapting their
of Communications Services (Unidad Reguladora networks and systems to implement portability. These
de Servicios de Comunicaciones, URSEC), as well as costs cannot be transferred to end-users.
the country’s three mobile network operators. It will (September 25, 2020) TeleSemana
be responsible for formulating a timetable for the

The Postal and Telecommunications Regulatory of the operators’ costs are denominated in foreign
Authority of Zimbabwe (Potraz), has bemoaned poor currency, meaning that the operators incurred huge
quality service from telecoms network operators due to costs when the exchange rate moved from the fixed
congestion, but says the industry is working to address $25 to US$1 to a variable rate. And with the costs now
the problem after being given additional bandwidth at pegged to the auction rate, Dr. Machengete said the
Zimbabwe no cost. POTRAZ Director General Dr. Gift Machengete, current tariff would guarantee viability for telecoms
said in an interview that each of the operators were operators. However, the regulatory authority’s boss
given about 20 megahertz up to the end of this year said that the only concern for the regulator was the
to ease congestion, which has affected quality of issue of congestion and poor service quality. “The
service. But, the operators are reportedly lobbying the losses were before we gave them a tariff increase. But
regulator to maintain the free additional bandwidth after we authorized a tariff increase, we believe they
beyond year-end to maintain high quality service, a should be able to sustain operations, we had last given
request the authority said it was still considering. Dr. them a tariff increase a long time ago. “As such, they
Machengete said Potraz took the decision to increase made exchange control losses before we gave them a
bandwidth for operators because of significant and tariff increase because of the exchange rate movement
sudden increase in the usage of online and digital from the fixed $25 to US$1 to between $70 and $83
platforms due to Covid-19 restrictions. Following the to US$1, which translates into losses. Most of the
outbreak of the coronavirus global pandemic earlier network operators require forex. After the Government
this year, Governments across the world enforced said they can now use the auction rate to convert their
strict restrictions that included national lockdowns foreign currency denominated costs, we gave them
to curtail the spread of the deadly virus. Commenting a tariff increase and after that we also issued them
on viability issues in the sector, Dr. Machengete said another tariff increase because their costs had lagged
Potraz had given operators permission to increase behind for some time,” he said. Now that the issue of
tariffs to cover costs, which ballooned on the back of costs had been addressed, Dr. Machengete said of
exchange rate and inflation increases. The telecoms major concern was the poor quality service, which has
operators incurred $13 billion loss in the quarter to been occasioned by congestion as a result of Covid-19
June on account of huge losses incurred as a result regulations. “The only problem is congestion and poor
of inflation and the exchange rate, which moved to quality of service. Everybody has gone virtual. There is a
around $81 to the US dollar from $25. In the quarter to problem of congestion which operators are working on.
June 2020, operators saw revenue increase 45 percent We gave them additional spectrum to cover Covid-19
to $3 billion while costs vaulted from $5 billion to $16 pressures. We gave them for free,” he said.
billion due to inflationary pressures emanating from (October 5, 2020) herald.co.zw
exchange rate increases. A significant component

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nology 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.

154 SEP-OCT 2020