Mobile subcribers reach 13 million

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THE total number of active mobile subscribers in Zimbabwe grew marginally to 13,1 million in 2019 a 2,2 percent increase from 12,9 million recorded in prior year, a report by the industry regulator has revealed.

In its sector performance report for 2019, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) said one telco led the growth in subscribers.
“Econet Wireless (Econet) recorded growth in subscriptions whereas NetOne and Telecel recorded a decline. Econet’s market share grew in line with the growth in the company’s subscriber base, whereas Telecel and NetOne’s market shares declined,” said Potraz.
Econet’s market share grew to 69,1 percent from 66,3 percent during the period under review. State owned mobile telecoms firm NetOne’s market share declined to 24 percent from 25,2 percent while Telecel dropped to 6,9 percent from 8,5 percent.
“Recalculating the mobile penetration rate using a population of 14,57 million for 2019 as per the Zimbabwe National Statistics Agency gives a mobile penetration rate of 90,6 percent down from 93,1 recorded in 2018,” said Potraz.
Potraz said the total number of active fixed telephone lines declined 1,1 percent to 265 734 last year from 268 849 recorded in 2018. The country’s fixed tele-density was 1,8 percent from 1,9 percent.
“Fixed telephone continues to experience competition from mobile telephony and VoIP hence, the gradual decline in subscriptions over the year, especially at household level,” said Potraz.
During the period under review, the total number of active internet subscribers marginally increased to 8,83 million from 8,72 million.
Going forward, Potraz said performance in 2020 will be dependent on the general economic environment.
“The economic environment impacts the sector through service demand and consumption levels, operating costs and investment. The growth of operating costs poses a threat to operator viability and puts pressure on prices,” said Potraz.
It said this may in turn impact demand for telecommunication services.
“The current power supply challenges have negatively affected the sector in terms of service provision, lost potential revenue and increased costs brought about by use of alternative power sources like generators, in an environment of rising fuel costs,” Potraz said.
The regulator said data and internet will continue to drive growth, however demand levels for fixed broadband at household level may be negatively impacted by rising prices.
“The use of Over-the-Top services such as WhatsApp, Skype and Viber is expected to grow as consumers cut back on communication expenditure. In the face of depressed demand, operators will continue to focus on new revenue growth strategies and alternative business models. These new business models, mainly around the Internet of Things, have taken centre stage in many countries and Zimbabwe is following suite,” it said. newsdesk@fingaz.co.zw