Econet loses appeal against tariff cuts

26 Nov 2015

Zimbabwe’s Administrative Court has blocked a bid by the country’s mobile market leader Econet Wireless to implement a hike in its tariffs. The Postal and Telecommunication Regulatory Authority of Zimbabwe (POTRAZ) ordered cellcos to reduce charges from USD0.23 per minute to a maximum USD0.15 from 1 January 2015, with plans to reduce tariffs further to USD0.12 per minute in 2016 and USD0.09 the year after. The cuts were based on the long run incremental cost (LRIC) model which was approved by POTRAZ last year. While Econet implemented the cuts as required, it launched an appeal, saying it was the only one of the country’s three operators to have paid its licence fees in full. It had asked to raise its charges to a maximum USD0.21 per minute.