Mobile internet, data usage on the upsurge

Mobile internet and data usage has continued on an upward trajectory this year and is projected to maintain the trend, according to telecoms industry regulator, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz).

The Latest report released by Potraz shows that mobile internet data has grown by 47 percent between the first quarter of the year and close of the third quarter to September 30, 2022.
Quarter on quarter, usage grew by 26,1 percent to 32,473 terabytes in the third quarter of 2022, from 25,756TB recorded in the second quarter of 2022.

“The trend is expected to continue as access improves and the scope of services increases,” said POTRAZ in the third quarter performance update.

The growth also comes as the market is embracing mobile internet-based services in line with the digitalisation drive, which is not only happening in Zimbabwe but prevalent across global economies accelerated by the outbreak of the Covid-19 pandemic.

“The sector has continued to grow as more services move to the digital space, contributing to increased demand and consumption of telecommunication services.

“This growth has been supported by the availability of the Internet, which is increasingly becoming more accessible across the country,” said POTRAZ.

During the quarter under review, NetOne gained Internet and data usage market share by a margin of 4,9 percent, in line with the growth in traffic. On the other hand, Econet and Telecel lost market share by 4,6 percent and 0,3 percent, respectively.

Total active mobile subscriptions increased by 4 percent to reach 14,562,242; up from 14,006,034, which resulted in mobile penetration rate increasing by 3,6 percent to reach 95,9 percent from 92,3 percent.

Prospects for the sector remain bright with growth in digitalisation.
Potraz said: “The sector is expected to grow exponentially with increased adoption of ICTs, operator investment and innovation efforts, as well as the Authority’s efforts to close the digital divide.”

Overall, the telecommunications sector is expected to continue growing supporting other key sectors of the economy. The sector is identified as an enabler and has been critical in facilitating business during the Covid-19 lockdown periods.

However, the sector is also hamstrung by the challenging economic environment with operating costs continuing to skyrocket.

“The sector will continue enabling other sectors as envisioned in the Government’s National Development Strategy 1 (NDS1). One main hurdle to overcome in the remainder of the year is the pressure on the profitability and overall financial sustainability of the sector.
“Although operating revenue increased in the third quarter of 2022, expenditure also rose across all subsectors. Prioritisation of the sector in terms of government expenditure, power availability, protection against vandalism, resource mobilisation, foreign currency availability amongst other issues, is pertinent,” said Potraz.-ebusinessweekly