POTRAZ Offers 2nd Cheapest Maximum Ceiling Tariffs In SADC

The Zimbabwe Postal and Telecommunications Regulatory Authority of Zimbabwe has set the least possible data tariffs in the Southern African Development Community (SADC) region.

From a regulatory
perspective,” The POTRAZ maximum data per megabyte does not allow operators to breach the 0.17 per megabyte lawfully, meaning the umbrella body puts a maximum cap to charges the operators can effect.

However one may wonder why our data costs then appear to be higher than those in these countries, when we have the least maximum permissible tariffs and this is attributed to rigorous competition where local service providers in other are able to offer their data at even lowest rates, way below the permitted maximum headline tariffs while still remaining profitable.

The economic conditions and cost of doing business in these countries make it viable and sustainable for them to maintain such pricing levels”.

POTRAZ also said that,” Besides the fact that their countries allow them to charge even higher from a regulatory perspective they choose to outsmart each with promotional data campaigns of even lower tariffs and these are not regulated fares but promotions as long as the service provider finds it sustainable and fortunately for the regional players they can compete and sustain operations at lesser costs as compared to the Zimbabwean environment.

Furthermore, in countries like South Africa, the connection is backhauled using pre-existing fiber infrastructure due to their proximity to the sea.
In contrast, Zimbabwe is a landlocked country.

The expenses incurred in trenching all the way through South Africa significantly contribute to the overall data costs”.

Additionally, the instability of the RTGS currency complicates the ability to generate profits from such investments and the inconsistent electricity supply further escalates costs, as fuel is frequently utilized to power the disconnected base stations, alongside excessive taxation burdens.

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