Monopoly stifles telecoms sector

LACK of competition in the fixed line telecommunications sector as well as restrictive policies has hampered growth in the sub-sector where State-owned TelOne still maintains a monopoly on fixed lines.

According to a 2014 report on Zimbabwe Trade Competitiveness by the Poverty Reduction and Economic Management Unit Africa Region, the Indigenisation and Economic Empowerment Act has also inhibited growth in the sub-sector by imposing strict limits on ownership and entry into the sub-sector by interested investors in telecommunications.

The telecommunications sector is pivotal in the economic growth of the country, but fixed line penetration as at 2011 was centred more on urban areas with 83% access while rural areas only had 17% access.

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