Council loses NetOne base station fees battle

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CASH-strapped Tsholotsho Rural District Council (RDC) has lost a bid to force mobile phone operator NetOne to pay $9 000 in base station fees after the court ruled that it was illegal.

CASH-strapped Tsholotsho Rural District Council (RDC) has lost a bid to force mobile phone operator NetOne to pay $9 000 in base station fees after the court ruled that it was illegal.

By Own Correspondent

The situation would likely see the RDC sink deeper into financial woes as it could be forced to refund Econet and Telecel monies the council claimed the operators were paying since 2011.

Tsholotsho RDC had taken NetOne to court demanding money for a base stations it operates in the local authority’s territory, which it said had accrued to $9 913,20 since 2011.

However, NetOne refused to pay the money arguing that it was illegal for the local authority to demand fees from telecommunication operators as there was no such law or statute that empowers the RDC to charge them such fees.

It said it was only the Posts and Telecommunications Regulatory Authority of Zimbabwe (Potraz) that had the mandate to do so.

In her ruling on Thursday, Bulawayo magistrate Meryline Mtshina said the RDC was not entitled to claim mobile operating fees from NetOne.

“The plaintiff (RDC) adduced evidence that it derives its powers in terms of section 76 of the Rural District Councils Act, Chapter 29.13.

“However they failed to show the court how it’s entitled to claim mobile licence fees.

“Also the provision relied upon doesn’t state that the RDCs must levy telecommunications service providers mobile licence fees,” ruled Mtshina.

“The provision clearly spells out that RDCs are entitled to charge licences that they issue such as liquor and shop licences.

“Clearly the plaintiff does not issue any mobile licence licences.”

In its submission through lawyer Nduduzo Dube, the RDC had said the levy was approved by the Minister of Local Government, Ignatius Chombo, and gazetted.

Council argued Telecel and Econet were paying the same fees except for NetOne.

However, the local authority failed to provide the approval and the statute, that gave it the green light to levy the mobile telecommunications providers.

Mazhar Petkar for NetOne said his client did not refuse to pay what was legally owed to the RDC but challenged the legality of the fees. He said NetOne as an arm of government abides by the law.

Petkar said Potraz was the only legal body with the legal mandate to charge cellular mobile network operators, operating licence fees.

He also went on to produce a circular from the Ministry of Local Government dated January 30 2012 sent to all RDCs which prohibited them from imposing any other additional charges for mobile phone base stations save for application fees for new sites.