NetOne increases data market share in Q1

State-owned telecommunications firm NetOne’s internet and data traffic market share increased by 8,8 percent to 24,71 percent in the first quarter to March 2024.

According to the Postal and Telecommunications Regulatory Authority of Zimbabwe’s (POTRAZ) 2024 first-quarter report, this represented a growth from 15,91 percent market share at the close of the fourth quarter in 2024.

Econet Wireless Zimbabwe’s market share in the internet and traffic segment declined by the same 8,8 percent margin to 74, 94 percent from 83,70 percent in the prior quarter while Telecel’s share in the segment remained constant at 0,35 percent.

While NetOne’s market share grew by 8,80 percentage points, Econet continued in pole position, commanding nearly 75 percent of the mobile data and Internet traffic market share.

This came as NetOne’s data and internet traffic doubled to 14,4 petabytes in the first quarter from 7,4 petabytes realised in the prior quarter.

Econet’s data and Internet traffic surged 11, 78 percent to 43,8 petabytes from 39,2 petabytes used during the previous quarter.

Telecel continued with dismal performance as its traffic closed the quarter under review at 204 683 611 megabytes.

Mobile internet and data traffic grew by 24,90 percent to 58,44 petabytes in the first quarter of 2024 from 46, 79 petabytes recorded in the fourth quarter of 2023.

All mobile operators recorded a surge in mobile internet traffic consistent with POTRAZ’s analysis of internet and data usage in the first quarter of 2024.

“The growth in mobile data traffic has been an ongoing trend as users continue to shift from consumption of voice-centric services to data-centric services, coupled with increased expansion of digital services, remote working, online learning, growing Internet connectivity and streaming services amongst other factors,” said POTRAZ.

However, Econet continued to dominate in the mobile voice traffic market share as it gained 7,13 percent to 88, 03 percent in the quarter under review from 80, 90 percent which was recorded in the previous quarter.

NetOne market share contracted to 11, 84 percent in the first quarter of 2024 from 18, 50 percent in the fourth quarter of 2023 translating to a 6, 66 percent decline.

Telecel mobile voice traffic market share continued on a downward trend as it slumped to 0,13 percent from 0, 60 percent in the quarter under review translating to 0, 47 percent decline.

“It is worth noting that the losses in market share recorded by NetOne and Telecel went to Econet,” said POTRAZ.

These developments come at a time when the sector recorded a 1, 56 percent contraction in active mobile subscriptions from 14 973 816 recorded in the fourth quarter of 2023 to 14,746,943 in the quarter under review.

This resulted in a 1,56 percent decline in mobile penetration rate to 96, 14 percent in the first quarter of 2024 from 97,7 percent recorded in the fourth quarter of 2023.

A major decline in active mobile subscriptions emanated from NetOne which contracted by 5,52 percent followed by Econet which recorded a marginal 0,04 percent decline in active mobile subscriptions.

Only Telecel registered a 4,34 percent growth in active mobile subscriptions.

Telecoms companies expect to increase their investments in 2024 due to an anticipated surge in telecommunications and information communication technology services demand.

Organizations and entities’ adaptation to technological advancement and digital transformation to suit the ever-changing business landscape is expected to sustain the demand for ICT solutions in the year.

In a great way, digital transformation is projected to create a positive growth environment for the local telecommunications sector as it drives demand for innovative solutions, which are critical for new-age business opportunities.

The foreseen growth is expected to create opportunities for indigenous telecoms companies in the short – medium term, through the provision of innovative products and services that include cloud computing, artificial intelligence, big data analytics, and Internet of Things (IoT) solutions.-herald