TELECOMMUNICATIONS company, TelOne has increased its tariffs by 199,35% with effect from yesterday.

In a statement, TelOne said the new rates were approved by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) and were necessitated by the group’s desire to provide world class services to its customers.

“Please, be advised that as per approvals granted by the Postal and Telecommunications Regulatory Authority of Zimbabwe, TelOne rates will be increased by 199,35% effective November 6, 2019,” the notice read.

“This increase has been necessitated by our continued desire to provide world class connectivity and digital solutions to you, our valued customer. Your respective account manager will engage you further on how the change will be effected to your account.”

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This comes after Potraz, last month approved an upward voice, data and SMS tariff review of 95,39% for both mobile and fixed network operators, saying previous tariffs had been eroded by inflationary pressures.

Inflation figures have been escalating since the beginning of the year, reaching an all high year-on-year of 175,66% in June, before government banned the publication of the figures in August.

In September, month-on-month inflation decelerated by 0,35 percentage points to 17,72% from 18,07% in August.

The increase in tariffs comes at a time Zimbabwe is facing an economic crisis coupled by foreign currency, power shortages, fuel price hikes and inflation, which has rendered the operating environment difficult for business operators.

Both fuel and electricity are important in the operations of telecommunication companies, to power base stations.

Last week, fuel price went up by 12% to $16,75 per litre from $14,97 for petrol, while diesel was up by $1,83 to $17,47. Later in the week, there was a 4c downward price adjustment on the commodity.

The Zimbabwe Energy Regulatory Authority last month allowed the Zimbabwe Electricity Supply Authority to increase electricity tariffs by 320% to 162,16 cents per kilowatt hour (kWh) in a bid to improve the country’s power supply.