Eonet Wireless Zimbabwe Limited (EWZL) has bemoaned the negative impact of inflation eroded tariffs on operating costs amid a move to inject US$66 million for a network modernisation exercise.
Presenting the group’s performance for the year ended February 28, EWZ board chairman, Doctor James Myers said while the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has done a commendable job in aligning tariffs accordingly, the rate at which inflation is moving is eroding the tariffs.
“Tariffs continue to fall behind inflation because of rapid changes in the macro-economic environment, this disparity occurs because tariffs for the sector are determined in the local currency, based on movements in inflation and in the exchange rates.
“This puts significant pressure on operating costs on the backdrop of grid power load shedding challenges.
“The prevailing tariff environment is a threat to the long-term viability of the local telecoms sector and curtails the ability of the sector…
