Telecoms industry eyes US$-indexed tariffs

STATE-owned telecoms operator TelOne says delays in approval of US dollar-indexed tariffs are threatening the viability of the industry.
In a trading update released after the company’s annual general meeting last week, TelOne said the delay comes amid acute operational challenges owing to exchange rate volatility and the consequent impact on the debtors’ book.
“The industry and TelOne, in particular, is affected by the delay in the approval of a tariff that is index linked to the United States dollar (US dollar).
“The regulator approved a 50 percent increase in tariffs in February and April 2023. As of the date of the last tariff approval, the exchange rate was US$1:ZW$928 and has since deteriorated by 582 percent to US$1: ZW$6 326.