The Zimbabwe Posts and
Telecommunications Corporation (PTC), a government-owned company, is the sole
provider and operator of telecommunications and postal services in the country. The PTC
also provides agency services for the Post Office Savings Bank. There are plans to
restructure the Corporation into a holding company with four subsidiaries: postal
services, telecommunications services, equipment manufacturing, and cellular mobile
telephone services. The PTC is governed by a board of directors comprised of public and
private sector representatives, as well as officials from the Ministry of
Information, Posts and Telecommunications. Currently, Zimbabwe still remains one
of the few countries in Southern Africa where the posts and telecommunications functions
are maintained within one organisation.
Currently, the PTC has monopoly on
the provision of all telecommunication services except cellular which has been the focus
of intense court action. Partial competition is allowed in the provision of certain
customer premise equipment, including telephones, PBXs, fax machines and modems.
Zimbabwe's international connections, both regional and global, are almost entirely via
satellite. In Mazowe, two Standard A earth stations are utilised to the access INTELSAT
spacecraft.
The waiting list for telephone
service is over 107,000. Unmet demand is pushing this figure much higher. In the rural
areas may have to wait for over ten years for telephone service. The digitalisation
program, although well behind the original schedule, has been in full swing in the
Midlands province. In addition, some 125,000 new lines and the digitalisation of
Mashonaland and Manicaland provinces are planned to be commissioned through a Japan
Overseas Economic Co-operation Fund (OECF) loan of US$ 115 million. This is expected to
increase the teledensity to 2.27.
Trunk calls between cities are
possible in most cases, and a network of X.25 with access nodes is in place in 5 major
cities: Harare, Bulawayo, Gweru, Masvingo and Mutare.
Zimbabwe has not yet established an
independent regulatory body. Tariff, licensing and other such decisions all are made by
the PTC. The Ministry of Information, Posts and Telecommunications is kept informed but
plays no role in the decision-making process. Following the recommendations under the
auspices of a World Bank-funded project, the government has recently come up with a draft
Communications Bill to be presented to parliament. The Bill will remove the monopolies
held by the Zimbabwe Broadcasting Corporation (ZBC) and the PTC by establishing an
independent regulatory body.
Over the last few years, pressure
has been mounting within Zimbabwe for the liberalisation of the telecom sector and even
the privatisation of the PTC. The latter has been challenged in court over its monopoly on
the telecommunications sector. EcoNet and Telecel cellular operators, which fought a
string of court battles, were granted cellular licenses.
Cellular (Mobile) phone
network
The total cellular market in
Zimbabwe is expected to reach 200,000 subscribers within the next five years. Two
further cellular licences have been awarded to Telecel and EcoNet to estbalish competition
with the cellular network run by the Zimbabwe PTC.
NetOne is the
major cellular radio and trunked radio operator owned by PTC. It covers all the major
cities, namely Harare, Bulawayo, Gweru, Masvingo, Mutare, Kwekwe, Marondera and Chegutu,
and has an estimated 19,000 subscribers. It has an international roaming agreement with
Vodacom of South Africa. In the face of increasing competition, Zimbabwe Posts and
Telecommunications Corporation (PTC) is reported to be close to selecting a strategic
partner in the existing NetOne network. PTC is expected to sell off 30% or more of
NetOne to generate funds essential for the continued expansion of the network. Moreover, Siemens
Mobile Networks (SA) has extended its contract with state-owned NetOne
cellular network to triple its capacity from 20,000 to 60,000 subscribers. The latest
contract, representing an investment of US$ 22 million, comprises the third phase of the
Siemens network which was installed in early 1997. Apart from increasing subscriber
numbers, the capacity expansion will relieve congestion problems, especially in Harare and
Bulawayo.
EcoNet (Enhanced
Communications Network) fought a fierce court battle challenging the PTC monopolies over
telecommunications services. EcoNet was finally granted a cellular GSM
network license.
Telecel (Formerly
Net Two) had its license invalidated by the high court due to irregularities in the award
of the License. The government decided in February 1998 to grant back a license for a GSM
network to Telecel as along as Telecel would drop the pending court case. Telecel has
agreed with the proposal.
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