NetOne wins USD8 million court battle

2 Feb 2015

Firstel Cellular, a Zimbabwean mobile retailer, has been ordered to pay USD8 million to state-owned cellular network operator NetOne for unpaid royalties. Firstel had inked an agreement to sign up new subscribers for NetOne services, with Firstel to be paid by way of commission on each customer it attracted. According to a report from The Herald, however, with the crash of the Zimbabwean currency and the subsequent introduction of a multi-currency system, Firstel struggled to collect the monies owed from subscribers. While Firstel argued that it should not be liable to cover the unpaid bills as it could receive no commission on a defaulted payment, the Supreme Court has now upheld an earlier court ruling which said that it must pay NetOne regardless of whether the subscriber settled the initial bill or not.

Zimbabwe, NetOne