In­ter­net ac­cess firms’ rev­enues down 8 pc

Chronicle (Zimbabwe) - - Business - Oliver Kazunga Se­nior Busi­ness Re­porter

THE Postal and Telecom­mu­ni­ca­tions Reg­u­la­tory Au­thor­ity of Zim­babwe (Po­traz) says rev­enues gen­er­ated by In­ter­net Ac­cess Providers de­clined by 8,9 per­cent in the first quar­ter to $39,4 mil­lion.

In its lat­est re­port, the reg­u­la­tory au­thor­ity also in­di­cated that the in­vest­ment by In­ter­net Ac­cess Providers (IAP) de­clined by 76,8 per­cent dur­ing the pe­riod un­der re­view.

“Rev­enues gen­er­ated by IAP de­clined by 8.9 per­cent to record $39,4 mil­lion from $43,3 mil­lion gen­er­ated in the pre­vi­ous quar­ter.

“IAPs also in­vested 76.8 per­cent less than what they in­vested in the fourth quar­ter of 2015,” said Po­traz.

Dur­ing the pe­riod un­der re­view, IAPs in­vested $6,6 mil­lion com­pared to 28,5 mil­lion in the quar­ter ended De­cem­ber 31, 2015.

“IAP rev­enues had al­ways been on an up­ward tra­jec­tory. The de­cline may be at­trib­uted to the gen­eral de­cline in con­sumer spend­ing in the econ­omy,” it said.

Dur­ing the first quar­ter last year, IAPs rev­enues were $33,7 mil­lion and $34 mil­lion in the sec­ond quar­ter of 2015.

In the third and fourth quar­ters of the same year the rev­enues were $37,5 mil­lion and $43,3 mil­lion re­spec­tively.

Mean­while, Zim­babwe’s telecom­mu­ni­ca­tions ser­vice providers’ rev­enues for the first quar­ter de­cline by 12,3 per­cent to $167,7 mil­lion com­pared to $191,1 mil­lion in the prior com­pa­ra­ble pe­riod

The reg­u­la­tory body at­trib­uted the de­cline to the sub­sti­tu­tion of tra­di­tional mo­bile ser­vices with Over-The-Top (OTT) as well as the gen­eral eco­nomic en­vi­ron­ment.

“OTT voice ap­pli­ca­tions such as Viber, Skype and What­sApp call­ing have be­come pop­u­lar al­ter­na­tives for in­ter­na­tional as they are sig­nif­i­cantly cheaper; this has re­sulted in fall­ing in­ter­na­tional voice traf­fic and in turn fall­ing rev­enue from in­ter­na­tional voice ser­vices,” it said.—@okazunga

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