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Econet questions Potraz’s Universal Services Fund

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ECONET Wireless has questioned the use of the Universal Services Fund (USF) being administered by the Postal and Telecommunication Regulatory Authority

ECONET Wireless has questioned the use of the Universal Services Fund (USF) being administered by the Postal and Telecommunication Regulatory Authority of Zimbabwe (POTRAZ), putting into sharp focus the regulators’ accountability.

Report by Business Reporter

The USF was essentially designed to channel investment in ICT infrastructure, especially in areas that are regarded as commercially unviable by private operators. Econet is the major contributor to the fund, being Zimbabwe’s largest telecommunication service provider Econet Wireless chief executive officer Douglas Mboweni told the Parliamentary Portfolio Committee on Communications Technology, Postal and Courier Services chaired by Kuwadzana East MP Nelson Chamisa (MDC-T) recently that communities have not substantially benefited from the fund.

“Econet is the biggest contributor to USF, contributing $43 million to date although we have not seen any meaningful deployment for the benefit of communities as was the intention in the beginning. Our colleagues in the sector may not have contributed to USF,” Mboweni said.

He said there was need for POTRAZ to maximise the use of the USF fund to broaden coverage.

Mboweni also said the infrastructure sharing which was being regulated by POTRAZ should be strategic for the benefit of all players.

“Efforts are underway to identify additional sharing sites on a one-on-one basis so as to ensure sustainability and maximise the speed of rollout throughout the country,” he said.

“Sharing of infrastructure should be synergistic and not parasitic where someone just rides on someone’s back.”

Mboweni, however, said Econet had the most shared sites than other operators, with 300 sites being shared with other operators, as well as Zesa, Transmedia, NRZ and local authorities.

The USF is a pool of money into which the country’s licensed telecommunications companies contribute 2% of their annual revenue.

The fund was established to finance the expansion of telecommunications services in outlying areas, which are under serviced Other purposes of the USF include assisting in the training of personnel in the provision of postal and telecommunication services and contributing towards research and development in the field of postal and telecommunication services.