Potraz cost modelling complete

07 Sep, 2014 - 04:09 0 Views
Potraz cost modelling complete Mr Nelson Chipangamate,Telecel regional manager, stresses a point while Mr Eddie Chibi the EcoCash services chief sales officer listens during the Mobile Markets and Telecoms Forum Conference at a Bulawayo Hotel last Friday

The Sunday News

Mr Nelson Chipangamate,Telecel regional manager, stresses a point while Mr Eddie Chibi the EcoCash services chief sales officer listens during the Mobile Markets and Telecoms Forum Conference at a Bulawayo Hotel last Friday

Mr Nelson Chipangamate,Telecel regional manager, stresses a point while Mr Eddie Chibi the EcoCash services chief sales officer listens during the Mobile Markets and Telecoms Forum Conference at a Bulawayo Hotel last Friday

Ngonidzashe Chiutsi Business Correspondent
THE cost modelling project carried out by Postal and Telecommunications Authority of Zimbabwe (Potraz) and players in the telecommunication sector aimed at reviewing tariffs is now complete, an official has said. Zimbabwe’s three mobile network operators; Econet, Telecel and NetOne charge an average 23 cents per minute for local calls.

However, there have been complaints by subscribers over the rates seen as high compared to those offered by regional operators.
Potraz economics and financial analyst Mr Talent Munyaradzi said the costing exercise carried out was aimed at aligning costs to the situation in the industry and ensuring operators charged rates reflecting the cost of operations.

“As Potraz we embarked on a cost modelling project and it’s a project that started around June 2012 when we were doing some consultations with operators and other stakeholders with the view of reviewing the charges,” he said.

“You will find that the cost structures that were used to derive tariffs in 2009 may have changed compared to what is currently prevailing.
The process was completed and it’s something that we are currently working on the implementation of the results,” said Mr Munyaradzi in Bulawayo while addressing stakeholders in the communication sector.

Mr Munyaradzi said they embarked on the exercise in order to come up with tariffs that subscribers should pay.
“The reasons for the review were not that the charges were high but we were trying to align the cost structures of the operators to the development that has taken place in the sector like the level of investment and the subscriber growth,” he said.

He said all telecommunications rates for licensed services were regulated and had to be cost-based.
“All the tariffs in the telecommunication sector are cost-based and we believe that customers have to pay for the actual cost of providing the service,” said the official.

Mr Munyaradzi said the jamming of interconnection by local rival mobile operators that happened in the past was now a thing of the past.
“The operator cannot just decide to cut the interconnection service to another rival operator. Because of the regulations in place, we don’t for see that happening because if an operator wants to cut service or interconnection agreements they have to seek approval from Potraz,” said Mr Munyaradzi.
“Interconnection is Guided by Chapter 61 of the Act and SI 28 of 2001.

“Both the Act and Statutory Instrument cover issues on the need for all operators to interconnect at any technically feasible point and on non-discriminatory terms and conditions,” said Mr Munyaradzi.

“Interconnection is necessary because consumers don’t want to know that for me to make a call from NetOne to Econet there is some interconnection and all what they are worried about is making a call,” he said.

Last year Econet Wireless blocked calls from its competitor Telecel posing serious inconvenience to the customers.

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