Telecommunication companies have disagreed with the government over the new call rates after the devaluation of the pound.

In December 2015, the Central Bank abandoned the fixed rate of the pound against the US dollar and allowing the rate to be determined by the demand and supply.

After the change, 100 dollars was selling at 1,855 at the banks.

The companies in turn raised the rate from 16 piasters per minute to 64, causing public outcry.

Telecom companies say they raised the call rates in accordance with the change.

“The argument is that they base their adjustments on actual costs. To them, they are profit-making company. So for a certain cost, there should be somebody meeting it,” said Dr Wani Lado, director of Communications Authority.

For its part, the government insists that the companies should raise tariffs gradually.

“They don’t want to make losses definitely. That is why we cannot come into agreement with them,” Dr Lado added.

The telephone companies include Zain, Viva Cell, MTN, and Gemtell.