NetOne, Huawei deal bolsters Zim broadband
A deal inked between state-run mobile phone outfit, NetOne and Chinese technology giant, Huawei has helped improve broadband provision on the market during the third quarter of this year, according to the Postal and Telecommunication Regulatory Authority of Zimbabwe (Potraz).
Potraz, which this week released third quarter telecoms data trends, said while the growth was significant, pockets of deficits were still being experienced in rural areas.
The US$400 000 NetOne-Huawei transaction involved the provision of high-end telecoms technologies to Zimbabwe’s second biggest mobile phone firm.
It was also expected to unlock up to 1 500 job opportunities during implementation, according to data released by the two parties in March.
In its review of third quarter telecoms trends, Potraz said high level broadband expansion experienced by the sector was underpinned by NetOne’s extensive deployment of new base stations.
“NetOne has partnered with Huawei on a broadband expansion project, hence the high number of deployments in the quarter under review,” the telecoms regulator said.
The data showed that Zimbabwe’s three mobile telecoms firms — NetOne, Telecel and the Zimbabwe Stock Exchange-listed Econet Wireless, deployed five new 2G, 12 new 3G and 37 LTE eNode Bs technology to their networks during the period.
The investments brought the total number of base stations across the sector to 9 099 during the third quarter of 2021, compared to 9 045 during the second quarter.
It said active mobile telephone subscriptions increased by 3,4% to record 13,9 million during the review period, compared to 13,5 million during the second quarter of 2021, while the mobile phone penetration rate also gained traction, rising by 2,2% to 93,5%, compared to 91,3% reported during the previous quarter.
NetOne, Zimbabwe’s first mobile telecoms firm, established 25 years ago, gained market share of 2G, 3G and LTE technology by 0,1%, 0,4% and 2,2% respectively during the period, underpinned by growth in its base stations, Potraz noted.
The telecoms regulator said despite the growth experienced across networks, extensive efforts were still required for the networks to cover the entire market.
“Mobile internet and data traffic increased by 10,4% to record 25 902 392,908 Megabytes (MB) in the third quarter of 2021 from 23 436 332 679MB recorded in the second quarter of 2021,” said Potraz.
“Out-of-bundle data constituted 5,4% of total mobile internet and data usage, up from 2,7% recorded in the second quarter of 2021. This may be attributable to the low out-of-bundle internet and data tariffs relative to economic conditions,” the report said.
Potraz said telecoms operators’ revenues increased by 15,8% to $19,5 billion (about US$170 million) during the third quarter, citing higher data traffic.
The performance was also boosted by the rise in active mobile telephone subscriptions.
The sector had generated $16,9 billion (about US$156 million) during the previous quarter, Potraz noted.
“Mobile operator revenues grew by 15,8% to record $19 537 428 107 from $16 867 934 111 recorded in the second quarter of 2021,” Potraz said.
“The growth in revenue is attributable to the growth in voice traffic as well as internet and data traffic. The revenue contribution of voice service declined whereas the revenue contribution of internet and data services increased. The revenue contribution of internet and data service has been consistently increasing as demand is consistently rising. An increase in outof-bundle mobile internet and data traffic was recorded in the quarter under review and this had a positive impact on revenue. Operating costs grew by 40,9% to record $12,5 billion (about US$114 million) in the third quarter of 2021 from $8,8 billion recorded in the second quarter of 2021,” Potraz noted.
The report said an overall growth of 19,3% in mobile voice traffic was recorded during the third quarter of 2021 to record 2,1 billion minutes, compared to 1,8 billion minutes recorded in the second quarter.
Internet Access Providers’ revenue increased 10,2% to $7,2 billion (about US$6,4 million), from $5,9 billion (about US$5,5 million) during the previous quarter. Potraz said active internet and data subscriptions increased by 1,2% to reach 9,3 million during the third quarter of 2021, compared to 9,2 million recorded during the second quarter.
“Telecel and Econet lost market share by 0,1% and 7%, respectively, whereas NetOne gained market share by 0,8%. Post-paid subscriptions constituted only 2,5% of total active mobile subscriptions and have been fluctuating over the course of the year. In an inflationary environment, both service providers and consumers prefer pre-paid subscriptions,” noted Potraz.