Zim Internet Subscriptions Up 6.7mil, 98% is Mobile.

The future of Zimbabwe internet is now certainly mobile as internet subscriptions recorded a marginal growth of 0.01% to reach 6,722,677 from 6,721,947 in the previous quarter in the first quarter of 2017.

Presenting the financial results for the first quarter, Postal and Regulatory Authority of Zimbabwe (POTRAZ) attributed the growth increased uptake of data and internet services by the majority of Zimbabweans.

Mobile internet subscriptions constituted 98% of total internet subscriptions. Of the total mobile internet and data subscriptions, 271,252 accessed and used LTE in the quarter under review.

“This represents a 28.2% increase from 211,566 subscribers recorded in the previous quarter. NetOne experienced the biggest growth of 65.3%.

LTE use is expected to increase as coverage and the smartphone penetration increases, said POTRAZ.

LTE use is expected to increase as coverage and the smartphone penetration increases, said POTRAZ.

Dandemutande was the only IAP to increase its equipped bandwidth capacity. There was no major change in the market share of equipped bandwidth capacity, save for the 0.2% gain by Dandemutande.

Liquid and Dandemutande were the two IAPs to register an increase in used international incoming bandwidth capacity.

There was no major change in the market share of used international internet bandwidth above.
In the quarter under review, IAPs generated a total of $45,553,463 in revenues and invested $5,889,182.

IAP revenues are expected to continue increasing in line with the growing demand for data and internet services in the country.

Mobile and internet subscriptions are expected to continue to grow marginally. Mobile internet will continue to dominate internet use in the country as 3G is more readily available and accessible as compared to the fixed internet technologies.

LTE use is expected to continue growing as LTE coverage and the penetration of LTE capable handsets improves. Household and corporate fibre subscriptions are also expected to grow as operators continue to rollout fibre. The uptake will also be driven by the improved affordability stemming from competition.

Internet and data services will continue to drive industry growth in terms of usage volumes whilst voice and SMS traffic will most likely continue to decline. Growth in the use of Internet of Things (IOTs) applications as well as growing consumer appetite for digital solutions will spur internet and data usage volumes.

The revenue contribution of internet and data is expected to increase as a result of the growing demand for internet services. OTTs will continue to present opportunities and challenges for operators.

The anticipated overall impact on revenue performance is expected to continue unless operators come up with innovative ideas to deal with the impact of OTTs on their revenues.

The revenue performance of the postal and courier sector will be dependent on their ability to utilise technology to innovate and come up with new solutions for the market.

Zimbabwe Mobile Penetration Declines.

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