Zimbabwe Telcos Hope Increase In Competition And Data Usage Will Boost Revenue

As Zimbabwe’s operating costs continue to escalate, telecom operators in the country are pinning their hopes on increased data usage and the general improvement in the local economy as they wait for an official response to their requests to raise tariffs.

Data and voice telephony usage is seen as an opportunity to support revenue growth after income dropped significantly in the past year.

The Director General of the Posts and Telecommunications Regulatory Authority of Zimbabwe (Potraz) Gift Machengete said that the performance of the telecom sector in 2019 would be dependent on the general economic environment which is currently experiencing inflation.

In February 2019 Zimstats said that the rate of inflation in Zimbabwe was 59%.

A statement issued by Potraz said that operators had submitted requests to increase tariffs, but the requests hadn’t yet received approval.

While presenting 2018’s fourth quarter telecom sector performance report in Harare, Machengete confirmed that operators were battling financially because of the country’s economic uncertainties.

 However, competition is expected to intensify within Zimbabwe’s telecoms sector, and this will result in competitive prices for consumers.

Machengete added that data and internet services would continue to drive industry growth and that this would exceed the revenue contribution of voice service. He also said that the use of over the top services was expected to grow as consumers begin to cut back on personal expenditure.

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