The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has warned of severe disruptions to service delivery and revenue generation in the telecommunications industry due to worsening power shortages.
In its 2024 Third Quarter Sector Performance Report released last week, Potraz highlighted the adverse effects of persistent power cuts, which have left many areas in the country without electricity for over 18 hours daily. These outages, attributed to a combination of drought and aging power infrastructure, are adding significant strain to an already struggling telecommunications sector.
“This has a negative bearing on the cost of service provision and revenue generation,” Potraz noted in the report.
Power shortages have forced service providers to rely heavily on expensive alternatives such as diesel-powered generators to keep their networks running. This, in turn, increases operational costs and puts upward pressure on service tariffs, affecting consumers already burdened by economic challenges.
Adding to the sector’s woes, the rainy season is exacerbating challenges. Potraz warned of the heightened risk of infrastructure damage due to flooding, particularly in low-lying areas prone to heavy rains.
“The onset of the rain season poses various challenges to network infrastructure, leading to service outages in some areas. This may call for proactive measures by service providers to safeguard network infrastructure,” the regulator stated.
Keep Reading
- Potraz licences new mobile operator
- Econet raises tariffs to counter rising costs
- Inadequate foreign currency allocations hampering network expansion: Potraz
- Telcos' tariff hikes cripple Zimbabweans
The dual challenge of power shortages and seasonal weather hazards has seen increased instances of service disruptions. Mobile network operators, who rely on uninterrupted electricity to power base stations and maintain seamless connectivity, have struggled to provide reliable service. Internet speeds have slowed in some regions, while call drops and outages have become commonplace, frustrating consumers and businesses alike.
These disruptions have a ripple effect on economic activity, with sectors dependent on stable communication networks, such as banking, e-commerce, and logistics, facing significant challenges.
According to the report, the telecommunications industry registered growth on all fronts except for traditional voice traffic which dropped by 7.46% in the third quarter.
“The trend of declining voice traffic is expected to continue due to increasing adoption of smartphones and the growing popularity of third-party applications such as WhatsApp, Facebook Messenger, and Apple’s FaceTime that substitute traditional circuit-switched voice calling. This is a global phenomenon, with predictions that the mobile network operators’ market share for voice traffic will fall from 79% in 2023 to 72% in 2028,” said Potraz.
“At the same time, mobile voice traffic is expected to gradually migrate to Voice over Long-Term Evolution (VoLTE) as operators increase deployment of high-speed 4G and 5G base stations to cater for the unfolding relentless demand for high-speed data connectivity. This has the potential to unlock new possibilities for healthcare and the Internet of Things (IoT).”