Zanu-PF fails to shut down Econet Zimbabwe

Johannesburg, 05 Feb 2004

Econet Wireless Zimbabwe has survived an attempt by the country`s Zanu-PF government to shut down its profitable operation on the grounds that it was "subversive".

On Friday, Econet was ordered by acting minister of transport and communications, Jonathan Moyo, to switch off its earth station that connects its 160 000 international business subscribers to the rest of the world.

However, following an urgent hearing, judge Younis Omerjee ruled that Moyo had ignored the legislation governing the telecommunications industry. He declared Moyo`s regulations "null and void and of no effect".

"We found fundamental flaws in the regulations themselves and these issues can be addressed if proper consultation is followed through the laid down procedures of the regulatory process," Econet spokesman, Kevin Kachidza, told ITWeb today.

"The regulations that were proposed were not only unlawful, but could not have been implemented for technical reasons. It was undoubtedly more of a political move than a regulatory one."

This is not the first time that Econet CEO Strive Masiyiwa has found himself opposing the Zimbabwean government.

Masiyiwa had a three-year legal battle with the government before being awarded the licence for Econet to operate mobile telephones in Zimbabwe, while he has also come under fire from Zanu-PF due to his dominant shareholding in Associated Newspapers of Zimbabwe, which owns the Daily News, which is the only independent newspaper in the country.

The regulations that were meant to close Econet also would have made Tel One, the state-owned telephone operator, the sole legal provider of international telecommunications services.

In his ruling against the regulations, judge Omerjee said: "The world, including most African countries, has moved away from monopolistic policies and they are adopting a system that gives consumers maximum access. There is no reason Zimbabwe should be dragged back to the dark ages."