MNO Revenue Falls 2.36% Despite Data Growth, But Operators Double Down With 152% Capex Hike

By Ross Moyo

Mobile Network Operators faced a mixed quarter. Total revenue declined 2.36% to ZWG 7.55 billion in Q1 2026 from ZWG 7.74 billion, despite a boom in data consumption.

Operating costs also fell 1.25% to ZWG 4.59B, largely due to post-festive seasonality. But the real story was investment: capital expenditure jumped 152% to ZWG 2.73B.

POTRAZ says the revenue dip reflects falling voice, SMS and data prices as operators compete for subscribers. Average Revenue Per User dropped 5.20% to ZWG 437.02 per quarter.

However, data has now become the biggest income stream, contributing 46.34% of all MNO revenue. That’s up from voice, which continues to erode.

The cost-to-income ratio worsened to 60.79%, meaning operators are spending more to earn each dollar.

Industry watchers say the capex spike signals preparation for 5G, rural coverage, and handling the 57% year-on-year data growth. “They’re sacrificing short-term profit to build networks for the next 5 years,” one analyst said.