HARARE – Zimbabwe’s state-owned fixed line operator TelOne says it is struggling to keep its head above water amid the country’s ongoing economic crisis.
Soaring inflation and a weak local currency, coupled with an inability to amend its tariffs due to regulatory constraints, mean the firm is finding it difficult to pay suppliers and is unable to invest in network expansion or improvement.
Annual inflation stood at 132% in May, while the Zimbabwean dollar has dropped 70% against the US dollar so far this year.
A report from ITWeb says no tariff adjustments have been approved for the operator in 2022; the last tariff review was in September 2021 and since then exchange rate movements and inflation have seen its bandwidth costs jump while it is unable to recoup the costs by upping its prices.
The firm has also been hit by an increase in network vandalism and copper theft.