The Information Communication Technology (ICT) sector has recorded a massive “inflationary” revenue growth, POTRAZ latest sector report has shown.
According to the latest report released by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), the first quarter of 2020 period was characterised by growth in revenue mainly generated by the mobile telephone networks.
The report shows a 26.2% increase to record $2.1 billion from $1.65 billion recorded in the last quarter of 2019.
A figure they can not celebrate due to the depreciation of local currency against other stable currency.
While the revenue figures looked very healthy, the mobile network operating costs grew by 46.1% to record $1.4 billion from $988.2 million recorded in the previous quarter.
The costs of operation recorded more than a 100% increase in the negative compared to the previous quarter, which is in fact a red light the sector must be worried about.
The figure is expected to double in the next quartely report as prices have been chasing inflation while revenue generation has been very slow with cost price failing to meet up with the inflationary environment.
IAP revenues grew by 49.6% to record $754.3 million from $504.1 million; operating costs by IAPs also grew by 80% to record $749.4 million from $416.3 million.
Fixed telephone revenue by TelOne grew by 23.6% to record $308.9million in the first quarter of 2020 from $250 millio recorded in the fourth quarter of 2019.
Operating costs by the fixed network also grew by 4.7% to record $249.2 million from $228.5 million recorded in the previous quarter.