Econet withdraws contract lines due to hyperinflation in Zimbabwe

SOUTH Africa-based network services provider, Econet Wireless, has withdrawn contract line services for some of its clients in Zimbabwe, as the telecommunications industry continues to bear the brunt of that country’s harsh economic conditions.

Econet, founded by South Africa-based businessman, Strive Masiyiwa, is one of the country’s three mobile telephone networks that have failed to cope with the market demand for their services in Zimbabwe’s hyperinflationary environment, alongside Telecel Zimbabwe and the state-owned Net One.

Econet, which is the country’s leading cellular network, published a statement on November 10, announcing that it was withdrawing its contract line services for clients under one of its payment schemes, a move which has affected thousands of Zimbabweans.

Together with other mobile service providers, Econet Wireless subsequently raised tariffs by 2,000 percent this week, with the average cost of a text message rising from approximately 1,000 Zimdollars (about R20) to at least 20,000 or R400.

By ITnewsAfrica.com