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Enacy Mapakame, Business Reporter

THE country’s telecommunications and postal services has maintained a growth trajectory during the third quarter to September 30, 2021 on the back of strong performances across segments.

Despite the rise in operating costs in line with inflationary pressures, latest figures from the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) show that mobile operator’s revenues grew by 15, 8 percent to $19,5 billion compared to $16,8 billion recorded in the second quarter of 2021.

The growth in revenue is attributable to the growth in voice traffic as well as internet and data consumption. The revenue contribution of voice service, however, declined whereas the revenue contribution of Internet and data was on the upside.

The revenue contribution of internet and data service has been consistently increasing as demand is consistently rising.

An increase in out-of-bundle mobile Internet and data traffic was recorded in the quarter under review and this had a positive impact on revenue.

According to Potraz sector performance for the third quarter, operating costs grew by 40,9 percent to $12,5 billion in the third quarter of 2021 from $8,8 billion recorded in the second quarter of 2021.

Mobile Internet and data traffic increased by 10,4 percent to record 25,9 billion megabytes in the third quarter of 2021 from 23,4 billion megabytes recorded in the second quarter of 2021.

Out-of-bundle data constituted 5, 4 percent of total mobile Internet and data usage, up from 2, 7 percent recorded in the second quarter. This may be attributable to the low out-of-bundle internet and data tariffs relative to economic conditions.

NetOne and Telecel gained market share of data by 1, 2 percent and 0,1 percent respectively, whereas Econet lost market share by 1, 3 percent.

Data and internet services are seen continuing to grow driven by increased demand as adoption of digitalisation continues spurred by the Covid-19 pandemic.

There was also an increase in used international incoming bandwidth capacity during the quarter under review.

“Used international internet bandwidth will continue to grow as the uptake of internet and data increases. The growth in outgoing international internet bandwidth capacity implies an increase in local online content accessed outside our borders in the quarter under review,” said Potraz.

Total revenue by Internet Access Providers (IAP) recorded a 10, 2 percent growth, operating costs grew by 4 percent, whilst capital expenditure also increased by 3,1 percent.

The report further shows that revenue generated by the fixed telephone network grew by 25, 2 percent to record $2,3 billion in the third quarter under review while operating costs increased by 13, 2 percent quarter on quarter to $2, 1 billion.

The information and communication technology (ICT) sector is expected to continue growing as it has already proven a key enabler to economic activity during the covid 19 induced lockdown.

“The ICT sector has transformed and evolved due to the Covid-19 pandemic; the outbreak resulted in increased demand and acquisition of ICT services by consumers.

“The sector is expected to continue evolving rapidly with increased innovation and enhanced connectivity in the country.

“Going digital is now more important than ever with the Covid-19 pandemic continuing to transform how we live, work and interact with one another.

“As the pandemic continues to disrupt normality, the importance of a robust and inclusive digital economy, together with reliable broadband services is imperative,” said Potraz.