Zimbabwe’s largest mobile phone network operator Econet was today forced to reverse tariff hikes it introduced on Wednesday and pretended to be sympathising with the consumers when it was the one that came up with the floor prices that were ultimately adopted by the operators.
Even its chairman Strive Masiyiwa expressed outrage at the tariff hikes saying “It is my understanding that it was a directive from the telecoms regulator. I have never supported this type of regulatory approach. It makes it difficult to introduce new services such as Mobile TV, when a “floor price” is set for data. Very unusual.”
However minutes of the Telecommunications Operators Association of Zimbabwe dated 17 October 2016 chaired by Telecel boss Angeline Vere show that it was Econet, which was represented by its chief executive Douglas Mboweni and three others, that suggested a floor price of 12 cents for voice and $0.05 for data.
Netone agreed with Econet on the data charge but initially wanted a voice tariff at 10 cents.
Telecel proposed 11 cents for voice and $0.005 for data.
Without naming the offending operator, the Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) today said it was “concerned and disturbed by the conduct, double standards, negative utterances and refusal to take ownership of this decision by some Mobile Network Operators (MNOs)”.
In its public notice reversing the tariff increases ordered by the Minister of Information Communication Technology Supa Mandiwanzira, POTRAZ said: “It has become apparent to us that the service providers have decided not to own up to the fact that they engaged the Regulator regarding declining revenues which were, according to them, threatening industry viability and service roll out.
“In fact the MNOs met prior to the issuance of this determination and proposed even higher floor prices through their collective voice, the Telecommunications Operators Association of Zimbabwe (TOAZ).”
POTRAZ said: “In its quest to ensure that consumers continue to enjoy quality telecommunication services and maintain the expansion drive towards universal access, POTRAZ positively received the plea by Operators and eventually agreed to the introduction of a moderated floor price which as envisaged by the Authority would ensure both sector viability and continuous service provision to consumers.
“It is clear that this decision has met with consumer outcry, understandably so, given the current economic challenges. It is against this background that POTRAZ would like to advise consumers and stakeholders in general of its decision to withdraw Regulatory Determination No 1 of 2017 with immediate effect.”
Playing innocent, Econet told its customers: “Econet acknowledges that our recent implementation of the new floor pricing for data which was done in compliance with the directive that was issued to all mobile network operators by the industry Regulator (POTRAZ) has not only inconvenienced you our valued Customers but has caused you pain.
“We have read and listened to the feedback that you have shared with us in respect to this action. We assure you that we take this feedback with the seriousness that it deserves and we are engaging the Regulator on the matter. Our goal continues to seek to consistently provide you with convenience, choice and value for money. However, we believe and trust that you are aware that Econet operates in a regulated industry and as the industry leader we are obligated to comply with the directives which are issued to us by the Regulator from time to time and this directive is one such instance.
“Having said this, we would like to advise you that we will continue engaging the Regulator on the impact this has had on you, our valued Customers so that we can continue to provide you with the highest quality services which will transform your lives.
“We are committed to providing you with quality service!”
The statement was issued by Mboweni
