Valley Technologies loses licence

Published: 01 August 2013

THE Postal and Telecommunications Regulatory Authority of Zimbabwe last week cancelled internet service provider Valley Technologies' operating licence for failing to meet the regulator's requirements.

In a letter addressed to Valley Technologies chief executive Mr Zachary Wazara, Potraz acting director-general Mr Alfred Marima said the company had failed to pay its licence, spectrum and number fees amounting to approximately US$2,4 million since 2010.

"You were issued with several reminders and final notices of demand for payment of licence and spectrum fees from 2010 to date. You were also afforded several opportunities to explain your position verbally. Despite these notices and meetings, you still failed to liquidate your debt and meet current licence and spectrum obligations to the authority," Mr Marima said.

Valley Technologies was ordered to switch off and decommission all equipment used for the provision of services under its licence by September 10.

"You are further advised to place any telecommunications equipment used to provide services under the licence in a warehouse on or before the effective date for disposal in terms of the permission issued by the authority," Mr Marisa added in the letter.

Mr Marisa said Potraz would institute legal action against the service provider if the company failed to pay off its debt as ordered.

When reached for comment this week, Mr Wazara said he had been informed about the letter through his lawyers.

"As you may be aware Valley has had new shareholders and directors since December 2012. I am, however, aware of the letter from Potraz, because it was addressed to me presumably because Lalela Trading, the new shareholders, and Valley Tech have not completed the change of ownership processes they applied for to Potraz earlier in the year," he said.

He said the directors who took over in December last year would ensure that the matters raised by Potraz would be addressed. The internet service provider has been facing challenges and recently had its assets including base stations go under the hammer to settle funds owed to Afrasia Kingdom Bank.

Afrasia Kingdom Bank entered into a debt-to-equity swap for 80 percent of Valley Technologies through the bank's special purpose vehicle Lalela Trading in December last year after the mobile network operator failed to settle its obligations with the bank.
- herald