Chronicle Editor
Natasha Sipindiye, Sunday News Reporter
THE Postal and Telecommunication Regulatory Authority of Zimbabwe (Potraz) has recorded an increase in fixed telephone subscriptions, internet and data usage as more people adopt remote working and e-learning in the aftermath of the Covid-19 pandemic.
Presenting the key trends observed in the Postal and Telecommunication sectors during the second quarter of 2023 in a quarterly report released early this month, Potraz director-general Dr Gift Machengete said there was an increase in active fixed telephone lines and general data usage.
“Total active fixed telephone lines increased by 3,2 percent to reach 301 465 in the second quarter of 2023, from 292 253 recorded in the first quarter in 2023. As a result, the fixed tele density increased by 0,06 percent to record 1,99 percent from 1,93 percent recorded in the previous quarter,” said Dr Machengete.
He said the aftermath of the Covid-19 pandemic which was now characterizsed by remote working and e-learning coupled with an ever-increasing smartphone penetration worldwide had seen internet and data usage growth.
“This is no exception for the sector as it recorded a 11,6 percent increase in internet and data usage to reach 42 058,3 terabytes in the second quarter from 37 690,4 terabytes recorded in the first quarter of 2023. Used incoming international internet bandwidth capacity increased by 8,3 percent to record 318 742Mbps from 294 201Mbps recorded in the first quarter of 2023,” said Dr Machengete.
Turning to postal and courier services, he said volumes have been on an upward trend in recent trading quarters.
“The sector realised a two percent growth after recording 536 986 items in the second quarter of 2023 from 526 305 items in the first quarter of 2023. The second quarter of 2023 saw both revenues and costs increasing in every segment. Notably, costs increased by greater margins as compared to revenues growth with expectation of mobile market. Intellectual Property (IP) revenues grew by 136,9 percent to record ZWL1 191,2 billion from ZWL80,7 billion recorded in the first quarter of 2023 meanwhile operating costs for IPs grew by 428,8 percent to record ZWL224 billion from ZWL42,4 billion recorded in the previous quarter.
“Most of the operators incurred operating costs growing which were more than their revenue growth in the second quarter of 2023. This directly means that most operators made losses in the trading quarter. As in its nature, the telecoms industry requires huge capital outlays across networks, this cannot be achieved whilst the sector operators are running losses,” said Mr Machengete.
He said the total revenue generated by the postal and courier sector increased by 249 percent while the total mobile operator revenues grew by 170,5 percent to record ZWL435,7 billion from ZWL161,1 billion recorded in the previous quarter. On the other hand, operating costs grew by 109,9 percent to record ZWL215,8 billion from ZWL102,8 billion recorded in the first quarter of 2023.
He said they remained optimistic of a continued positive growth of the sector in the coming quarters as the recent policy measures taken by the Ministry of Finance during the last month of the second quarter have brought stability on exchange rate and inflation.
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