MOBILE network operators (MNOs) recorded an 88,82% surge in nominal revenue to ZiG6,42 billion in the fourth quarter of 2024, largely due to the devaluation of the local currency, a new report shows.
The growth is from ZiG3,4 billion recorded in the third quarter of 2024.
This comes as the government devalued the ZiG during the period under review, sparking widespread economic turmoil.
“Total nominal revenue for mobile network operators grew by 88,82% to reach ZiG6,42 billion from ZiG3,4 billion recorded in the third quarter of 2024,” the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) said in its fourth quarter report of 2024.
“The massive nominal growth in the quarter under review is attributed to the devaluation of the local currency towards the beginning of the fourth quarter from USD1:ZiG13,9987 to ZiG24,3902.”
Potraz, however, reported that in real terms, the revenue realised by the MNOs was a 24,07% growth, after discounting the exchange losses.
“On the other hand, aggregate nominal operating costs for MNOs grew by 70,95% from ZiG1,61 billion recorded in the third quarter to ZiG2,8 billion in the fourth quarter of 2024,” Potraz said.
“However, in real terms, operating costs grew by 12,33%.
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“MNOs total capital expenditure increased by 39% from ZiG607,07 million recorded in third quarter to ZiG842 million. In real terms, capital expenditure declined by 8,84%.”
Potraz said at a global level, the costs to income ratio improved by 4,36 percentage points in the fourth quarter, signalling improved efficiency and effectiveness in cost management by the MNOs.
During the period under review, MNOs endeavoured to enhance connectivity, quality of service and network speeds by stepping up their deployment of 5G base stations across the country.
This is evidenced by a 48,15% increase in 5G deployments in the quarter under review, according to the regulator.
The technology allows for better connectivity, boosting overall revenue for MNOs, which get most of their revenue from voice traffic.
“Mobile network operators recorded a massive growth of 41,78% in total voice traffic from 2,81 billion minutes recorded in the third quarter to 3,98 billion minutes in the fourth quarter of 2024,” Potraz said.
“The sector recorded a 49,81% massive growth in net-on-net traffic in the quarter under review, consequently this led to an overall voice traffic growth of 41,78% despite significant contraction in other traffic categories such as international outgoing and incoming from fixed.
“The overall growth in traffic may be attributed to festive promotions offered during the quarter under review, as well as increased need by users to connect with loved ones, share greetings and make plans for the festive season.”
Meanwhile, mobile internet/data traffic grew significantly by 24,13% from 78,38 Petabytes recorded in third quarter of 2024 to 97,19 Petabytes in the quarter under review.
“The sector faced significant economic challenges, including local currency depreciation against major currencies, which created difficulties for telecommunication operators reliant on imported technology and equipment. This compelled companies to innovate their pricing strategies to maintain competitiveness while ensuring profitability,” Potraz said.
“Consumer preferences continued to evolve significantly, with a marked shift towards datacentric services, driving demand for reliable and cost-effective telecommunications solutions.
“Meanwhile, Starlink’s market entry disrupted traditional ISPs [internet service providers] by offering relatively affordable internet services, prompting price competition, but sparking debates over licensing and equitable service obligations.”
Potraz said the sector envisaged a growth trajectory driven by increased adoption of emerging technologies like artificial intelligence, internet of things and machine learning.
“Exchange rate stability of ZiG provides a stable operating environment bringing some optimism on the trajectory of the sector in 2025,” Potraz added.
On another note, very small aperture terminal subscriptions skyrocketed by 513,79% to record 23 410 from 3 814 recorded in the previous quarter.
Potraz attributed this to the coming on board of Starlink, an American internet services firm.
