The government, which has been struggling to attract foreign direct investment, has been rattled by Telecel Zimbabwe’s threats to take its license dispute with Harare to the International Centre for Settlement of Investment Disputes (ICSID).
Zimbabwe has faced numerous such court actions for breaching bilateral laws and business malpractice.
In a letter written to President Robert Mugabe, Technology Minister Supa Mandiwanzira, Indigenization Minister Chris Mushowe and Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) boss Baxton Serewu, Telecel Zimbabwe said if there is no solution to the wrangle in six months then it will seek international relief.
Businessman Tafadza Musarara of Resource Exploitation Watch told VOA Studio 7 Telecel Zimbabwe must exhaust local remedies before taking the government to an international court.
Reached for comment, former Technology Minister Nelson Chamisa of the opposition Movement for Democratic Change said the government has bungled its handling of the Telecel Zimbabwe fall out.
The government claims that Telecel failed to follow Zimbabwe's telecommunications regulations complying it to have a majority stake held by local people.