Mobile operators set to up revenue growth

late, data services in the country.
The country’s three mobile telecommunications service providers include Telecel Zimbabwe, Econet Wireless Zimbabwe and NetOne.
The anticipated revenue growth is notwithstanding the slight dip in numbers last year when the Postal and Telecommunications Regulatory Authority of Zimbabwe compelled the three mobile operators to carry out mandatory SIM card registration, and the fact that fixed line subscriptions have stagnated over the past decade.
Global research firm Frost & Sullivan has projected that the country’s mobile telecommunications market should earn revenues of US$1,34 billion by 2016.
In 2009, the sector posted revenues of US$372 million. At the beginning of that year, Zimbabwe’s tele-density              rate was estimated to be around 10 percent.
According to Frost & Sullivan, the US$1,34 billion projection entails a compound annual growth rate of 20,1 percent, which is, however, lower than the 40,6 percent revenue growth  recorded between 2008 and 2009.
“However, declining growth rates are expected when markets become increasingly saturated,” noted the research firm.
Local technology analyst Mr Gavin Rutsito says that Frost & Sullivan’s revenue projection to 2016 is realistic, but the companies need to address the issue of high pricing.
“Most Zimbabweans are still suffering from unemployment and those that are employed have low disposable incomes. The company that will offer the best value proposition have the brightest prospects in the long run,” he said.
At the beginning of this year Potraz announced that Zimbabwe’s tele-density rate rose 7,2 percent during the previous year to close at 74,7 percent
It was, however, below the 10 percent tele-density growth rate annually to 2015 as targeted by the Ministry of Information and Communication Technology.
“Tele-density” measures the number of active mobile phone SIM cards and landlines as a percentage of the country’s total population.
In recent months, Telecel, which was the second largest operator by subscribers (1,8 million subscribers as at the end of 2011) has been actively augmenting its market share by significantly reducing the price of its SIM cards.
It seeks to snap up a significant portion of the market share, which is currently dominated by Econet Wireless.
Econet, as at the close of last year, had around 5,6 million subscribers, while NetOne has fallen off over the years to close last year with 1,4 million subscribers.
Fixed telecommunications provider TelOne closed the year with 337 881 subscribers, down  50 000 compared to two years earlier.
However, with tele-density currently around 75 percent, there is still a significant untapped market.