Online Reporter
Michael Tome
Business Reporter
MOBILE Network Operators (MNOs) should continue expanding network infrastructure to keep pace with rising demand for connectivity, despite mounting operational cost pressures, the industry’s regulator has said.
In its 2025 third-quarter sector performance report, Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), said the telecommunications industry remained on a growth trajectory, buoyed by strong gains in key performance indicators such as internet and broadband penetration rates.
The trends reflect a growing appetite among Zimbabweans to engage digitally, with information and communication technologies (ICTs) increasingly viewed as a catalyst for economic development.
In the quarter under review, internet and data services remained the largest revenue contributor for MNOs, accounting for 49,64 percent of the total sector revenue.
POTRAZ attributed the performance to the growing uptake of data-intensive applications, including video streaming and social media platforms such as Netflix, YouTube and TikTok.
“In trying to keep up with the growing demand for connectivity, operators are expected to continue expanding network infrastructure, with such investments aimed at improving network coverage, quality of service and network efficiency.
“The continuous deployment of next generation network infrastructure i.e, LTE and 5G base stations, will not only serve the growing demand for connectivity by the populace, but will also enhance overall user experience, greater digital inclusion and innovation,” said POTRAZ Director-General Dr Gift Machengete in a statement accompanying the report.
POTRAZ noted that continued deployment of next-generation network infrastructure, particularly LTE and 5G, will support rising data consumption, enhance user experience, promote digital inclusion and stimulate innovation across the economy.
During the quarter, MNOs rolled out an additional 67 5G base stations, bringing the national total to 319.
Operators also deployed 125 new LTE base stations and 76 3G base stations, further strengthening network reach and capacity.
However, the quarter was marked by a slowdown in capital expenditure, as the total sector capex declined by 67 percent to ZiG 508,92 million, compared with a 261 percent increase recorded in the previous quarter, when investments reached ZiG 1,53 billion.
While the dip in capital spending reflects short-term investment adjustments, POTRAZ said, sustained infrastructure rollout remained critical to meet long-term connectivity needs and support Zimbabwe’s digital transformation agenda.
In the quarter under review, MNOs recorded a strong revenue performance, which rose by 8,35 percent to ZiG 7,27 billion, up from ZiG 6,71 billion in the prior quarter.
However, the revenue gains were affected by an increase in operating costs, which surged by 19,71 percent to ZiG4,16 billion from ZiG3,48 billion in the second quarter.
