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Business Reporter
ECONET Wireless Zimbabwe (Econet) has adjusted its voice bundle tariffs by 20 percent and says the move is meant to guarantee continued delivery of normal service to its customers.
The telecommunications giant, which has invested over US$1,3 billion in infrastructure since 2009, told customers in a notice that it would review its bundle of joy voice bundles starting yesterday.

Previously pegged at $6,00 or (US$0,07) for two minutes, the daily voice bundle has been reviewed upwards by 20 percent and is “way below the annual inflation rate of 475,21 percent for October 2020, said Econet.

The latest tariff adjustment comes at a time when the Government is banking on increased infrastructure development in the information and communication technologies (ICTs) sector to achieve its Vision 2030.

Operators have been lobbying authorities to approve cost-reflective tariffs and reduce the tax burden to allow telecommunication firms to continuously re-invest in their businesses and in the industry.

Economic analyst, Mr Francis Mukora, said the prevailing economic fundamentals were stifling growth in the country’s capital-intensive telecoms industry, which constantly requires a steady flow of investments into networks, spectrum, towers and new technology.

“Contrary to the popular belief that capital injection into the telecommunications industry is a once-off investment, companies have to constantly pour in money to upgrade networks, pay software licences, buy fibre, radio, and towers, among other things,” he said.

“For the industry to survive there is a need for sustainable data, voice and SMS tariffs as well as tax breaks.”

Zimbabwe’s telecommunications sector, dominated by Econet, NetOne, Telecel, TelOne and Liquid-ZOL, has been negatively impacted by inflationary pressures, declining capital expenditure, rising operating costs and stiff competition from over-the-top services, among other challenges.

Both the Government and the private sector agree that developing a robust ICT sector is key to realising the dream of an all-inclusive and vibrant economy.

ICT, Postal and Courier Services Minister, Dr Jenfan Muswere, is on record emphasising the need for the telecommunications sector to play its part in improving Zimbabwe’s digital capabilities, especially with regards to ensuring universal access.

“Without access to ICTs, people cannot actively participate in the socio-economic development agenda of the country. Access to ICTs is, therefore, not a luxury and a preserve for the elite,” he said recently.

“We need to catch up with technology, in particular 5G, for which we need a road map and strategy, or else we remain digital laggards.”
Economists also contend that the recent increase in electricity charges will have a negative effect on the delivery of efficient and quality services to customers in the telecommunications industry and wider business.

The power utility, Zesa, has already increased electricity tariffs by more than 150 percent in the last two months citing the need to break even and pay coal suppliers as well as secure funds to sustain power imports from regional producers such as Eskom in foreign currency.