Chronicle Editor
Chronicle Writer
RELATIVELY low voice call tariffs across the telecommunications sector pushed Zimbabwe’s mobile voice usage up by 30 percent in the third quarter of 2023, a latest industry report has shown.
According to the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) Third Quarter Sector Performance Report, mobile voice traffic grew significantly to 3,29 billion minutes, up from 2,53 billion minutes recorded in the second quarter of 2023.
“The sector realised growth in mobile voice traffic in the third quarter of 2023. This may be attributed to an eroded voice tariff, which fluctuated around USD 0.01 (One USD cent) for on-net calls throughout the quarter,” said the regulator.
“On-net bundles and promotions by operators also played a big role in the significant growth in traffic, which resulted in a 37,5 percent surge in net-on-net traffic, which is without doubt, the major traffic growth driver in the quarter under review,” read part of the report.
Potraz, however, noted that the low tariffs, coupled with power outages, foreign currency shortages, and declining disposable incomes, greatly affected growth and capital expenditure in the telecommunications industry.
Total capital expenditure by mobile network operators grew marginally from $26.7 billion in the second quarter to $33.9 billion in the third quarter.
“The sector still faces inadequate foreign currency resources that are required to upgrade, expand, and maintain telecommunication networks. Low disposable incomes in the country remain a major constraint on service affordability and uptake by postal and telecommunication users,” it said.
“The sector is heavily affected by power outages, which increase the cost-of-service provision. These are operational realities that inhibit sector growth.”
To address these challenges, Potraz initiated tariff reviews in the third quarter, which are expected to improve Revenue-to-Cost Ratios (RCRs) of operators.
“This will spur increased investment by operators and enhance service delivery through improved coverage and quality of service,” added the regulator.
In the third quarter of 2023 mobile network operators generated revenues of $850,8 billion, up from $435,7 billion recorded in the previous quarter, and translating to a 95,3 percent revenue growth.
At the same time, mobile network operators saw operating costs surge by 99,3 percent to $430 billion, up from $215,8 billion incurred in the previous quarter.
“However, in real terms, revenues, operating costs and capital expenditure did not increase by the same margins due to the inflationary operating environment, which has not spared any sector of the economy.
“This continues to stifle investment in infrastructure as evidenced by a decline in new terrestrial deployments in the quarter under review,” said Potraz.
“A net total of 164 new base stations were deployed in the third quarter of 2023, as compared to 363 base stations deployed in the second quarter.”
Potraz said it expected the ongoing contractionary monetary and fiscal policy measures to stabilise the macroeconomic environment, which is necessary to facilitate investment in the sector.
“As investment levels and economic well-being improve, it is expected that demand for services will increase and boost the performance of the sector,” said the regulator.
Online Reporter