Potraz defends local data tariffs
TELECOMMUNICATIONS regulator, Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has defended data tariffs in the country, describing them as comparable to the region.
Presenting the Postal and Telecommunications 2021 fourth quarter sector performance report in Harare on Tuesday, Potraz director-general Gift Machengete said the reason data appeared expensive was people’s low disposable incomes that were limiting the majority of citizens access to data.
“Our data tariffs are not out of this world,” Machengete said.
“They are actually comparable with other countries in the region. We are lower than a few of our colleagues in the Sadc region. When we look at South Africa, the problem is the value of the rand is quite stronger than ours so at the end of the day it appears that the tariffs are high but its disposable income is higher than ours. The same applies to Botswana. Mozambique, Zambia and Malawi also have higher disposable incomes, making their data appear cheaper than ours.”
Data usage doubled in 2021 compared to the previous year, mostly as a result of COVID-19 lockdowns during which periods individuals relied on the internet for interaction and business activities.
Machengete said Potraz was utilising Universal Service Funds (USF), which are contributions from all telecommunication operators, to promote internet access in marginalised areas.
“We are going to relocate about 22 base stations to some rural areas to promote internet penetration in the rural areas. We have given schools computers and we are paying bandwidth for them, especially now that we have been struck by the pandemic.”
Machengete said Potraz played the regulatory role to ensure affordability while making sure telecommunication companies to remain afloat.
“The year ahead presents a positive outlook for the information communications technology sector, considering the upheaval that swept across the industry as a result of the COVID-19 pandemic,” Machengete said.
“In 2022, the industry is expected to focus on more innovations to deal with situations such as pandemics as well as emerging technologies such as internet of things, machine to machine learning, artificial intelligence, and distributed ledger among others. The various economic reforms implemented by the government of Zimbabwe have potential to positively transform the economy in 2022. However, as with the previous year, cost escalations are expected to continue, for as long as the dual currency system remains in practice. Hence, the intricacy of balancing service affordability and operator viability remains a priority for the regulator to address, while fiscal interventions may be necessary.”
Potraz statistics showed that in the final quarter of 2021, NetOne grew its market share from 30,7% to 31,4%, while Econet Wireless continues to dominate despite its market share dropping marginally from 65,1% to 64,9%. Telecel’s market share shrunk further from 4,2% to 3,7%.