RBZ urged to prioritise telecoms
THE Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has implored the
Government to prioritise foreign currency allocations to mobile network operators as operating
costs continue to escalate and run ahead of revenue.
According to Potraz, the current economic environment is proving to be a big challenge for
operators in the sector, with the authority calling for intervention at both the operator and fiscal
levels.
The relentless increase in prices has seen market players lose revenue in real terms as working
capital needs continue to grow at a rate that exceeds income, leading to reduced network
investment.
Consequently, this has resulted in reduced capital expenditure in US dollar terms in the first
quarter of 2022.
In a statement accompanying the telecoms first quarter performance report, Potraz director
general, Dr Gift Machengete said the prevailing challenges called for policy and strategic
interventions at both sector and national levels.
“Monetary authorities should consider foreign currency prioritisation of the sector considering the capital-intensive nature of the ICT sector,” said Dr Machengete.
The telecoms regulator said the current economic climate was characterised by depressed
consumption and foreign currency constraints, which have manifested through reduced traffic
volumes.
ICT expert Rungano Chihonde weighed in saying,” The Telecoms industry is highly dependent on
imported equipment and accessories which makes it eligible to be on the RBZ’s foreign currency
allocation priority list.”
According to Potraz’s first quarter performance report, mobile internet and data traffic declined
14, 9 percent after a total of 22 052 Terabytes of mobile internet and data were consumed.
The decline in internet and data traffic was experienced across all three mobile networks due to
declined data affordability.
The dip in demand for mobile data is also attributable to receding Covid-19 lockdowns, which have seen the resumption of physical interactions over virtual.
However, the total number of active internet and data subscriptions increased by 1 percent to 9
644 271 as of March 31.
Mobile voice traffic declined by 2, 3 percent to 1, 77 billion minutes in the first quarter. Total
mobile network revenue stood at $28,8 billion, a 10 percent increase from $26,2 billion recorded
in the fourth quarter of 2021 with voice contribution to revenue declining to 42 percent while
mobile data grew to 39,3 percent from 38, 1 percent.
Operating costs grew by 22, 7 percent to $17 billion from $3, 1 billion recorded in the fourth of
2021.
Bandwidth costs, staff costs, and depreciation continued to be the main cost drivers for mobile
operators Mobile network operators saw a decline in voice and internet traffic in the first quarter but revenue grew 10 percent to $28, 8 billion from $26, 17 billion recorded in the preceding quarter.
With 1, 1 percent growth, Econet was the only mobile network to record growth in active
subscriptions while NetOne and Telecel recorded declines of 1, 1 percent, and five percent
respectively. For NetOne, this is the first quarter over the past year to record a decline in active
subscriptions.-The Herald
