SECTOR PERFORMANCE REPORT

1ST QUARTER 2021

Remarks By
The POTRAZ Director General
Dr. G. K. Machengete ‘creating a level playing field’

The Postal and Telecommunications Regulatory Authority of fixed telephone network grew by 11.6% to record ZWL1.57
Zimbabwe (POTRAZ) continues to observe social distancing billion, from ZWL1.4 billion. On the other hand, fixed network
measures owing to the COVID-19 pandemic. Hence, the operating costs increased by 76.1% to record ZWL1.37 billion,
traditional Director General’s Sector Performance Press from ZWL775.2million recorded in the fourth quarter of
Conferences remain suspended until further notice. 2020. IAP revenues grew by 48.9% to record ZWL6.8 billion,
Accordingly, the Director General hereby presents the key from ZWL4.6 billion. Meanwhile, total operating costs for
trends observed in the Postal and Telecommunication IAPs grew by 26.6% to record ZWL3.2 billion from ZWL2.5
sectors during the first quarter of 2021 as follows: billion. Postal and courier revenues increased by 5.1% to
record ZWL158.4 million, from ZWL150.7 million recorded in
Growth in active internet & data subscriptions and decline in the previous quarter. Operating costs grew by 31.7% to
fixed and mobile subscriptions record ZWL187 million, from ZWL142 million recorded in
The total number of active Internet and data subscriptions fourth quarter of 2020.
increased by 1.7% to reach 9,029,644, from 8,875,649
recorded in the fourth quarter of 2020. As a result, the CHALLENGES
Internet penetration rate increased by 0.2% to reach 61.1%, The inflationary environment, as evidenced by the rising cost
from 60.9% in the previous quarter. On the other hand, active of service provision has not spared operators in the sector.
fixed telephone lines declined by 1% to record 249,486, from The credit crunch as well as foreign currency challenges have
252,067 recorded in the fourth quarter of 2020. However, negatively affected network expansion and maintenance as
the fixed tele-density remained at 1.7%. Active mobile spare parts, equipment and vendor support fees require
telephone subscriptions also declined by 1.7%, to 13 million foreign currency. The high cost of International Internet
subscribers in the first quarter of 2021, from 13.2 million Connectivity remains a challenge, as Zimbabwe is a
recorded in the fourth quarter of 2020. Accordingly, the landlocked country, accessing bandwidth from undersea
mobile penetration rate declined by 2.7% to reach 87.8%, cables via Mozambique and South Africa.
compared to 90.5% in the last quarter of 2020. Active
subscriptions have been experiencing seasonal fluctuations INDUSTRY OUTLOOK
over the past year due to the impact of the Covid-19 The COVID-19 pandemic has served to magnify the
pandemic on demand and consumer behaviour. significance of ICTs in all aspects of life, as it has triggered an
exponential rise in Internet usage through activities such as
Growth in Mobile Voice Traffic & a decline in Fixed Voice e- learning, e shopping, e worshiping and e-health amongst
Traffic others. Indeed, the pandemic has magnified the urgent need
Total mobile voice traffic increased by 3.5% to record 1.56 for accelerating digital transformation. The necessity for
billion minutes in the first quarter of 2021, from 1.51 billion greater investment in digital technologies, skills and
minutes in the fourth quarter of 2020. Fixed telephone voice innovation can never be over-emphasised. Accordingly, there
traffic declined by 13% to record 85.5 million minutes in the is an urgent need to accelerate digital transformation in line
first quarter of 202, from 98.2 million recorded minutes in the with the National Development Strategy (NDS1), which
fourth quarter of 2020. Fixed voice service continues to face identifies the digital economy as a key pillar.
competition from Voice-over-Internet Protocol (VoIP) which
is increasingly being adopted by corporates, hence the Notwithstanding the above, foreign currency shortages will
fluctuations. continue to bedevil the economy at large, with implications
on network expansion, upgrade and maintenance. This
Growth in Internet & data usage negatively affects quality of service standards, which will
Mobile Internet and data traffic increased by 29.9% to record further be compromised by anticipated increase in demand,
21,865 Terabytes in the first quarter of 2021 from 16,834 in particular for data/Internet. Foreign currency constraints
Terabytes recorded in the fourth quarter of 2020. Used will also continue to stall universal access/service projects
international incoming bandwidth capacity also increased by targeted at rolling out connectivity in unserved and
9.3% to record 174,645Mbps from 159,665Mbps recorded in underserved areas, most of which are in rural areas.
the fourth quarter of 2020. Internet and data traffic are
expected to continue growing due to the increased adoption The COVID-19 pandemic will not to go away soon, but its
of e learning, telecommuting, and e-conferencing. spread may be curtailed by the ongoing vaccinations across
the globe and at national level. The anticipated increase in
Growth in postal and courier volumes economic activity will bring about a further surge in demand
Total postal and courier volumes improved by 21.8%, to for communication services, in particular data and courier
record 483,391 items, from 396,975 items recorded in the volumes as consumers adapt to the new normal. Hence, the
fourth quarter of 2020. This is largely attributable to need to scale up digitalisation.
COVID-19 restrictions that affected the channelling of mail,
resulting in a huge dip in mail volumes, which in the future are STAY SAFE. COVID-19 IS REAL. PREVENTION IS BETTER
set to improve as lockdowns get relaxed globally. THAN CURE!

Growth in revenue vis-à-vis rising operating costs across all