The Sunday News
Nkosilathi Sibanda, Sunday News Correspondent
THE Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) is of the view that the country’s Information Communication Technologies (ICTs) industry is envisaged for growth buoyed by its first-quarter performance as businesses adjusted to Covid-19 lockdown restrictions.
Potraz, in its first-quarter update of the postal and telecommunications sector performance report noted that consumers were using internet and data, more often, indicating a huge shift from the conventional postal and telephonic modes.
In the outline presented by Potraz Director General Dr Gift Machengete, the regulatory body said the need to cut communication expenditure by consumers and industry has made way for the use of teleconferencing facilities and online communication platforms such WhatsApp and Viber.
“Internet and data traffic is expected to continue growing due to the increased adoption of e-learning, telecommuting, and e-conferencing.
The use of Over-the-Top services, such as WhatsApp, Skype and Viber, is expected to grow in the current economic environment as consumers cut back on communication expenditure. Few voice calls were made while postal and courier services hit a low record as well, according to Dr Machengete.
“The period under review registered a decline in total fixed voice traffic which fell by 6,9% to record 112,1 million minutes in the first quarter of 2020 from 120,35 million minutes recorded in the fourth quarter of 2019. The postal and courier volumes have been declining over the past five years and this decline in postal and courier volumes, in particular dome.
“Total voice traffic processed by the mobile networks also declined by 4,7% to record 1,33 billion minutes from 1,4 billion minutes recorded in the fourth quarter of 2019. Given the current economic environment, consumers have been inevitably substituting voice service with cheaper Over-the-Top services such as WhatsApp.”
In the report, a 2,8 percent increase of mobile internet and data traffic was recorded.
The number of active mobile subscriptions shot to 13 724 522 up from 13 195 902, with a 3,6 percentage rise in mobile penetration. It was noted that mobile telephone networks have earned rewards with the rapid adoption of ICTs, as Potraz indicated that a revenue growth of 26,2 percent of $2,1 billion from $1,65 billion recorded in the fourth quarter of 2019.
“The period was characterised by growth in revenue generated by the mobile telephone networks which grew by 26,2 percent to record $2,1 billion in the first quarter of 2020 from $1,65 billion recorded in the fourth quarter of 2019.”
Dr Machengete said operating costs for mobile networks remained high.
With digital platforms gaining ground, fixed telephone services also had a fair share of growth.
“Fixed telephone revenue grew by 23,6% to record $308,9 million in the first quarter of 2020 from $250 million recorded in the fourth quarter of 2019.
“Operating costs by the fixed network also grew by 4,7% to record $249,2 million from $228,5 million recorded in the previous quarter,” said Dr Gift Machengete.
Dr Machengete said the performance of the sector continues to be dependent on the economic environment which impacts the sector through service demand, consumption levels, operating costs and investment.
“Given the current inflationary pressures in the economy, operating cost containment will be more crucial for operators to maintain profitability, as the growth of operating costs poses a threat to operator viability,” he said.
In first-quarter, the country’s mobile penetration was 94,2 percent presenting an upsurge in the number of mobile subscribers, from 90,6 percent.
“The quarter under review registered growth in the total number of active mobile subscriptions which increased by 4 percent to reach 13,7 million from 13,1million recorded in the fourth quarter of 2019. Hence, the mobile penetration rate increased by 3,6 percent to reach 94,2 percent from 90,6 percent.”
Owing to the decline in consumer expenditure, Dr Machengete said there was a drop in landline use, a situation largely caused by the shift to cheaper communication tools.
“The active fixed telephone lines declined by 1,8 percent to record 260 959 from 265 734 recorded in the fourth quarter of 2019. The fixed tele-density remained 1,8 percent. The fixed telephone subscriptions have been fluctuating over the years,” he said.
Although there was a sharp swing towards e-communication platforms, Potraz said the rise in the price of data bundle packages made way for the decline in active internet and data subscriptions.
Dr Machengete said the unavailability of foreign currency weighed heavily on efforts to expand network expansion.
