Harare - ZSE-listed telecomms giant, Econet Wireless Zimbabwe Limited says it hopes for the adaptation of a scientific and fact-based approach to setting tariffs that’s takes into account the movements in the Telecommunications Price Index in the near term.

For time now the telecommucations industry has lamented low tariffs citing that they have continued to be low compared to other countries, hence hindering much progress within the industry.

In a trading update for the first quarter ended 31 May, 2022, the Group said tariffs have remained below viable levels and an adaption of a scientific and fact-based approach will allow it to reaming focused on delivering high quality digital services. 

“This will allow the Group to remain focused on delivering high quality digital services across the country by being able to invest sufficiently to absorb the increasing demand for its services,” Econet said.

The telecommunications sector was granted a tariff adjustment by the regulator of 61% in July 2022,and a further 61% with effect from 1 September, 2022 and a further 61% with effect from 1 November, 2022.

According to Econet, the tariffs will cover voice, SMS, data and internet services and are determined in local currency.

During the quarter under review, the Group's voice and data traffic grew by 6% and 18% respectively largely due to the customer acquisition strategy.

However, Econet continues to record significant foreign currency losses due to the weakening exchange rate which deteriorated by 172% during the quarter under review.

The Group highlighted that access to foreign currency has remained severely constrained creating further challenges in the implementation of necessary network upgrades to assure the continued level of high quality service experienced by customers.

The Group noted that rural population remains marginalised in terms of full 
access to digital services with less than 20% of devices in the country being LTE/4G capable. 

“The Group, with the support of the authorities, would like to tackle this challenge to ensure that digital inclusivity is achieved across all sectors of our society,” Econet said.

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