Mobile telephone users could soon start enjoying cheaper rates when making calls following indications the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) is working on a new costing model.
The new model is expected to result in reduced tariffs for ordinary consumers. Currently a minute costs an average of $0,23.
Speaking at a five-day workshop that ended last Friday, Potraz director-general Charles Sibanda said the current costing model had become irrelevant in the prevailing set-up.
Potraz is mandated by law to issue licences in the postal and telecommunications sector and to set the terms and conditions for activities in the sector.
We are working on a costing model that is acceptable to everyone, that is fair to the consumer and to operators, said Sibanda.
This implies changing our costing model, we have been using the Cositu model since 2000. This was, however, designed for fixed telephone and technology has since changed.
The Cositu model is described as an example of a top-down cost model. It is based on enhanced fully distributed costing principles.
Cositu produces unit costs and prices for international, subregional, and regional calling and can also account for the effects of universal service funding, taxes and any access deficit as mark-ups over current unit costs, to calculate interconnection prices.
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Sibanda said the regulatory authority wants to come up with a costing model that would address the current situation, in consultation with the operators and consumers.
Operators should sell a product that consumers want, said Sibanda.
International Telecommunications Union area representative for Southern Africa, John Mpapalika said the purpose of the workshop was to enable the country to use cost-based tariffs.
The current costing model that is being used in the country was selected arbitrarily without any methodology, he said.
He said if Zimbabwe was to adopt the cost-based tariff, it would result in cheaper tariffs for consumers.
This will be good for the country as more people will be communicating. It will consequently improve the traffic hence operators at the end, will earn more revenue while the government will earn more taxes. The system will benefit everyone, said Mpapalika.
He said consumers were communicating for a limited period as a result of the high tariffs. The country currently has three mobile operators Telecel Zimbabwe, NetOne and Econet.
According to Potraz, Zimbabwes tele-density rose to 74,7% as of September 2011.
Tele-density measures the number of active mobile phone sim cards and landlines as a percentage of the countrys total population.
According to the regulatory body there were slightly over nine million mobile phone subscribers.
