Chronicle Editor
Michael Makuza, Business Reporter
POSTAL and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has said in the face of huge transformation in the sector driven by changing consumer behaviour, technological advancements and increased competition from non-traditional players, there is a need for innovation and exploring sustainable revenue generation.
In its first quarter report, Potraz said total revenue generated by the postal and courier sector increased by 38.1 percent to record $646.8 million in the first quarter of 2022 from $468.26 million recorded in the fourth quarter of 2021.
Operating costs increased by 46 percent to record $586.8 million from $401.94 million recorded in the fourth quarter of 2021.
“The postal and telecommunications sector is undergoing a huge transformation driven by changing consumer behaviour, technological advancements and increased competition from non-traditional players.
“Compounded to this is the economic climate, characterised by depressed consumption, inflation, foreign currency constraints, reduced network investment amongst other challenges,” reads part of the report.
The regulatory authority said this calls for policy and strategic intervention at both the operator and fiscal levels.
“On their part, operators need to innovate and explore sustainable revenue generation and cost containment avenues considering the current economic climate.
“On the other hand, monetary authorities need to consider the prioritisation of the sector in terms of foreign currency given the capital-intensive nature of the industry.”
In the period under review, Potraz said total postal and courier volumes declined by 13.4 percent to record 556,618 items from 642,432 items recorded in the fourth quarter of 2021.
International incoming courier was the only category to register growth in volumes.
Revenue generated increased by 38,1 percent and is attributable to increased foreign currency earnings from the increased international incoming volumes vis-à-vis reduced international outgoing mail. However, operating costs grew by an even greater margin (46 percent ) and capital expenditure declined by 39.9 percent.
The total number of active fixed telephone lines declined by 0.1 percent to record 243,123 as of 31 March 2022, from 243,421 recorded as of 31 December 2021.
Residential subscriptions declined by 0.4 percent 0.3% increase in corporate subscriptions was recorded.
Potraz said the sector remains intrinsic to the country’s economic growth and has also become an essential enabler for other sectors.
The sector is set to continue enabling other sectors as envisioned in the Government’s National Development Strategy 1 (NDS1).
Online Reporter