Imported internet increases network costs

PLAYERS in the telecommunications sector have attributed the high costs of digital connectivity services to imported internet and key accessories’ expenses, which they incur among other operational obligations.

Responding to public complaints over ‘expensive’ data and call costs in Zimbabwe when compared to other regional peers, the sector says it is facing operational constraints linked to the depreciation of the local currency and the higher premium incurred when sourcing foreign currency.

Chairperson of the Telecommunications Association of Zimbabwe (TOAZ), Eng Lawrence Nkala, told delegates who attended the belated World Telecommunications and Information Society Day at Masendu in Bulilima District, Matabeleland South, on Friday that the sector needs more forex resources to expand its network and improve on efficiencies.

Engineer Lawrence Nkala

“As operators, we are certainly cognisant of the cost concern that has often been raised by the consumers. I would like to assure this gathering that we are constantly thriving to provide you with affordable connectivity solutions.

“Over the past two years, operators have been persistently in the deployment of projects on the core backbone and access solutions including seeking out ways to land internet in the country at the least possible cost,” he said.

“As an imported service the need for foreign currency in the sector to be able to pay for the bandwidth and various network elements cannot be overemphasised.

“It remains our call to the regulator and the Government to support this endeavour by facilitating a much more stable pricing model that guarantees quality services for our clients.”

Mr Nkala said the ICT sector is now focused on the deployment of the latest technologies like 5G, which is expected to generate about US$2,5 billion globally by 2023 and grow to US$24 billion by 2027. Zimbabwe is part of the drive.

“Currently, fibre deployment will complement the delivery of 5G services, which will usher advanced digital services like smart cities, smart grid, intelligent transportation, and other e-services,” he said.

“As TOAZ we remain grateful to the open regulatory environment where we have been able to engage the regulator POTRAZ and our parent ministry to continuously seek the best approach to deliver all the mentioned technologies and bring every single Zimbabwean online while retaining the ability to sustain quality service in our business.”

Eng Nkala said the telecoms sector was committed to supporting the Government in facilitating the connection of areas that remain unconnected to the communication grid including driving the Government’s vision of digitalisation of public offices.

This is in line with the National Development Strategy (NDS1) focus to ride on ICTs to enhance the delivery of an upper-middle-income vision by 2030.

“Zimbabwe has already made significant strides with mobile penetration standing at 94,2 percent while internet penetration is sitting at 65,3 percent just a few points above the global average of 64 percent,” said Mr Nkala.

“This progress speaks to the efforts that our country is making and the expectation is that the internet penetration should further increase with the aggressive investment that we are seeing and network deployment in many areas around the country.”

internet

The need for more ICT investment in Zimbabwe is aligned to the global need to more than triple investment in digitisation by 2026 in order to provide universal and meaningful connectivity according to the data released by International Telecommunications Union.

“This is against the backdrop of an estimated 2,7 billion world populations having been noted to be offline in 2022,” he said.

Eng Nkala said the digital divide between the least developed and the rest of the world was widening hence the ITU had made a call for increased funding for digitisation of the world from US$30 billion to US$100 billion by 2026, which he said local players must play a part in servicing the demand for connectivity, which is increasing by the day.

This year’s commemorations were being held under the theme: “Empowering the least developed countries through information and communication technologies”.

Speaking at the same occasion ITU Southern Africa representative, Charlie Tumelo, hailed Zimbabwe for establishing Community Information Centres throughout the country, a move she said will help bridge the communication divide.

“ITU applauds the government of Zimbabwe for the long-term programme of deploying Community Information Centres everywhere in the country, especially in remote areas. This effort exposes populations to information and communication technologies leaving no one behind,” she said.-chronicles