Voice calls will from December be reduced by more than 30% after the Postal and Telecommunications Authority of Zimbabwe (Potraz) adopted a new pricing model to regulate the local industry.
Presently, the maximum tariff is pegged at 23c per minute and the new model will reduce the price ceiling to 15c per minute. Potraz, this year, conducted a study, which revealed that Zimbabwe’s mobile voice customers were being overcharged by up to 30% due to a variety of operational inefficiencies.
In a circular to the industry dated October 16, Potraz said it had abandoned the Cositu pricing framework — an International Telecommunications Union’s model for the determination of costs and tariffs (including interconnection and accounting rates) for telephone services — in favour of a long run incremental cost (LRIC) model, which will see tariffs progressively coming down in response to a public outcry by consumers.
“The Cositu model that was used from 2004 to 2009 was designed for switched circuits and has since been rendered obsolete due to technological and market developments in terms of newer services that are packet-based across the board,” the authority said in the circular.
Cellular mobile operators were directed to cut their voice tariffs in line with the new model from December this year. However, data charges would be determined by market forces.
In the report, Potraz directed tariffs to be further adjusted to 12c per minute in 2015, and then 9c in 2016. The interconnection rate, which has been 7c for several years, will be reduced to 5c in December, 4c in 2015 and 3c by 2016.
Source: Southern Eye