Online Reporter
Jacqueline Ntaka, Opinion
ZIMBABWE’S telecommunications sector is a critical pillar of its digital economy, and the role of its primary regulator, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz), in ensuring fair competition among Internet Service Providers (ISPs) is paramount.
Potraz’s primary tool for promoting competition is its licensing framework. The authority issues different types of licences — such as Telecommunication Licence for Network Facilities Services and Telecommunication Licence for Network Services — that allow for various levels of market entry.
This multi-tiered approach is designed to encourage both large-scale infrastructure providers and smaller, more agile application service provicses, Potraz aims to break up the “natural monopoly” that historically existed in telecommunications, where the high cost of infrastructure made it difficult for new players to enter the market.
For example, a key regulation is the requirement for infrastructure sharing. This policy compels network facility providers to allow other licensed operators to use their existing infrastructure, such as towers and fibre optic cables. This is a crucial measure that lowers the barrier to entry for smaller ISPs, who might otherwise be unable to afford the significant capital investment required to build their own nationwide networks.
The intent is to encourage service-based competition, where providers compete on price, quality, and innovation rather than on who owns the most physical infrastructure.
Beyond licensing, Potraz actively monitors the market for anti-competitive behaviours. This includes preventing unfair pricing, tied sales, or any practices that could stifle a competitor.
The regulator has the authority to issue orders and determinations on tariff levels, ensuring that dominant players do not use their market position to undercut smaller competitors in an unsustainable way. This is particularly relevant for the average Zimbabwean consumer who is highly sensitive to data pricing.
The regulator’s oversight is vital for maintaining a healthy balance between encouraging investment and protecting consumer interests.
A key debate point is the effectiveness of these measures in practice. While Potraz’s framework is robust on paper, some critics argue that the influence of large, dominant players remains strong.
The high cost of licenses and certain regulatory fees can still act as a significant barrier for new entrants, and there’s an ongoing debate about whether the existing players are truly incentivised to share their infrastructure on fair and transparent terms.
The conversation around telecommunications in Zimbabwe is rich with diverse perspectives. Consumers often feel caught between high prices and a desire for better service, while local providers point to high operational costs and a complex economic environment.
The recent entry of international players like Starlink has further intensified this debate, with questions being raised about a potential uneven playing field, particularly regarding licensing and tax regulations. These discussions highlight the delicate balancing act Potraz must perform: promoting competition to drive down costs and improve service, while also ensuring the long-term viability and investment of local companies.
The future of the sector will likely depend on Potraz’s ability to adapt its regulatory framework to keep pace with rapid technological change, fostering a truly competitive environment that benefits both businesses and, most importantly, the end user.
l Jacqueline Ntaka is the CEO of Mviyo Technologies, a local tech company that provides custom software development, mobile applications and data analytics solutions. She can be contacted on [email protected]
