Econet reacts to taxes?

Nigel Gambanga Avatar

Econet-Bundle-Price-ChangeIts funny some of the small things that catch a mobile subscriber’s attention. We recently received a tip from an Econet subscriber who noticed that the network has adjusted its voice¬†bundles, this time with a marginal price increase.

The voice tariffs for the Econet Bundles are now being advertised in the promo SMS as being “as low as 9 cents”, a small and rather insignificant change from the 8 cents per minute offer that was available last week.

Its easy to ignore this price change, after all its has no effect on the length of your call anyway. However, the question is whether this is how the new additional tax on airtime will be passed on to the consumer?

Is Econet and every other network operator going to assume the greater part of that 5% airtime tax? Or perhaps the airtime vendors are the ones facing a reduced commission on every recharge card they sell?

Currently vendors make up to 9 cents from each card, a figure that the networks can reduce with a slightly higher wholesale price. This would help keep airtime priced at face value and the vendors and networks can then share this new fiscal burden.

It works well for the consumer, after all who wants to pay $1 for 95 cents airtime. It is however a damper for the vendors especially who have enjoyed decent returns from the airtime business.

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8 comments

  1. Beatnyama

    Lets see how Econet and others decide to do it. Here in Namibia if you buy N$10 airtime you only get N$8.70 airtime and people are used to it.

    1. ic0n1c

      I am not sure if here people can get used to that! That said, it seems fair that this increase be absorbed marginally by the mobile operator, the vendors and the customer himself. Only a proportion of the 5 cents can be spread in the cost of a call and the per second billing charge i am sure wont change that much. Government does need the revenue, what is important is how the operators deal and strategize on this new development.

  2. Econet subscriber

    I am a prepaid consumer. I have recently noted a trend where I just notice my airtime just finishing off. The only app I have on my cell is whatsapp of which I buy whatsap bundles.

    Guys , just take a close look momboona kuti zviri kufamba sei

  3. Brian

    Hi Nigel, 5% of 8 cents is 0,4c. They’ve effectively added 12.5% to the consumers rate.

  4. Farai

    “However, the question is whether this is how the new additional tax on airtime will be passed on to the consumer? – yes. It is a business decision.If electrisity goes up, bread an dpizza go up. No business can absorb increase in tax/costs.

    Is Econet and every other network operator going to assume the greater part of that 5% airtime tax? – no. Actually never. Did they assume the mobile money tax? No cushioning of customers in this tight and difficult period.

    Also are these adjustments approved by Econet..ooops I meant POTRAZ!?

  5. kb

    Its difficult to tell since this is a promotion. Lets wait and see how it goes.

  6. Ethni Suliali

    A little tangential, but the Econet message is phrased “voice tariffs as low as up to…”, I thought the word combination is poor

  7. bug

    Word combination not poor but simply the maximum charge is 0.09cents peak and 0.08cents off peak, hence “….. as low as upto”…… its actually correct english