Zimbabwe Telecoms Revenues Get Hit By Inflation
The Potraz sector report for the first quarter of 2019 shows a concerning revenue decline of approximately $37.1 million. In Zimbabwe’s already troubled economy, this figure sends a major warning sign.
The results of the second quarter are expected to show even more revenue decline as inflation just gets higher in the country.
Experts in the sector have called for a price review saying that the current tariffs are preventing growth and making it impossible for telecoms firms to reach profitably under the dire circumstances.
The last “price review” took place when all telecommunications service providers matched their prices to the USD equivalent while still maintaining the same pricing from the USD equivalent.
However, this move lost effect when the government decided to ban the use of foreign currency.
Only Zimbabwe’s national regulator, Potraz can sanction a price increase, and the nation’s telecommunication operators cannot do this without first obtaining clearance from the regulator.
Operators are reported to have submitted a new price review to the regulator saying that if the tariffs are not reviewed urgently, telcos stand the risk of running their businesses at a massive loss and compromising the quality of customer service.
Credit: This article originated from www.techunzipped.com