Zim Telecommunications Revenue Down 11%

Revenue into the Telecommunications sector declined by 11% to $228 748 120  in the second quarter from $237, 771, 722 recorded in the previous quarter.

According to statistics released by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), the decline was largely driven by the fall in voice traffic, which declined by 5.2% to record 1,192,571,970 minutes from 1,257,842,811 minutes recorded in the previous quarter.

By Marvelous Chibagidi 

Active fixed telephone lines in the country declined by 0.8% to reach 332,580 from 335,172 recorded in the first quarter of 2015. As a result the fixed tele-density declined by 0.1% to reach 2.5% from 2.6% recorded in the previous quarter. The fixed telephone lines which are no longer in use could also have attributed to the loss in the sector.

Traffic on the fixed telephone traffic declined by 5.8% to record 167,980,843 from 178,317,321 minutes recorded in the previous quarter. All traffic categories, with the exception of incoming traffic from IAPs and outgoing traffic to IAPs, registered declines therefore contributing to the sector loss.

Fixed telecommunications Revenues Table. Source Potraz
Operator returns Table. Source Potraz

“Fixed telephone revenues for the second quarter of 2016 were $28,309,055. This represents a 7.7% decline from $30,670,623 recorded in the previous quarter. On the other hand investment increased by 8% to record $1,740,512 from $1,611,079 invested in the previous quarter.

“The Average Revenue per User per month for the second quarter of 2016 declined by 7.2% to reach $28.31 from $30.58 recorded in the previous quarter. This is attributed to the decline in revenues. Average costs per user per month declined by 2% to record $28.35 from $28.93 recorded in the previous quarter which was a positive development,” said POTRAZ.

Telecel also experienced a decline in market share by 0.4% to reach 13.7% from 14.1% recorded in the previous quarter as a result of the decline in active subscribers.

Due to the over the top services which have continued to make communication cheaper, mobile services providers have since the last quarter recorded a decline in revenue as there has been a decline in the voice traffic.

“National traffic declined by 3.6% despite the numerous mobile voice promotions that were in the market in the second quarter of 2016. This is partly attributed to the declining consumer demand as the economy experiences the liquidity crunch. The substitution of mobile voice service with Over-the-Top services also greatly contributed to the overall decline in voice traffic.”

A total of 1.8million Gigabytes of mobile data were consumed in the second quarter of 2016. This is a 23% increase from 1.5million Gigabytes consumed in the previous quarter.  On the positive side, all mobile operators experienced an increase in internet and data utilisation.

Total mobile revenues declined by 3.7% to record $161.5 million from $167.7 million recorded in the previous quarter.

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