World Dialogue on Regulation

According to a Reuters report, a private company that has Zimbabwe's second fixed-line network license could have the permit revoked after it failed to roll out its network, the telecommunications regulator said. TeleAccess has not yet built its network four years after being awarded the license.

Cuthbert Chidoori, the Director General of the Postal and Telecommunications Authority of Zimbabwe, said that the authority had notified TeleAccess of its intention to cancel the license. The company’s lawyers have asked the regulator to justify the cancellation.

Chidoori told a parliamentary committee that TeleAccess had failed to pay the full US$ 5 million initial payment for the license required last year and had not yet paid an additional US$ 8 million due by the end of next month. TeleAccess has unsuccessfully applied for two additional licenses for Internet services and data provision. The company now requires more than Z$1 trillion (US$ 161 million) to roll out the network, compared to Z$8 billion (then US$ 146 million) four years ago.

Zimbabwe's other fixed-line telephone service is state-owned TelOne, which is not able to meet demand due to lack of foreign currency to upgrade its network and increase its subscriber base.

The country's telecommunications industry, which has three mobile networks, has not grown in the last five years as foreign currency shortages occurred due to falling exports and declining support from international donors and lenders.

Intelecon Research & Consultancy Ltd. 09/11/2004