• Penalties includes for call and data service quality, SMS performance, and network uptime
• Providers will be fined $200 per cell in breach, with additional penalties for network outages,  failure to submit required performance data
• Zimbabwean telecom operators are facing challenges in meeting quality standards, while new entrants like Starlink offer high-speed satellite internet

Harare- The government has implemented stringent penalties for network service providers, imposing fines of up to US$5,000 for poor-quality services.

The country boasts a competitive telecommunications industry, featuring multiple players in each segment, offering a range of services including voice and data, fiber and ADSL internet, cloud solutions, and cybersecurity.

Key performance indicators in this sector include call and data service quality, as well as SMS performance.

The Data Service Access Success Rate (DSASR) has been set with a target of at least 95%, while the Data Service Drop Rate (DSDR) must not exceed 2%. DSASR measures the ratio of successful data service access sessions to total access attempts, whereas DSDR refers to the proportion of abnormally released data service sessions to successful access sessions.

These metrics are critical for maintaining quality standards in cellular telecommunications.

Cell Availability, or uptime, is another essential metric representing the number of hours a cell is operational. For fourth-generation (4G) data services, the minimum downlink speed is set at 5 Mbps, while the uplink speed must be at least 1 Mbps.

Providers that fail to meet these quality standards over a three-month evaluation period will incur a fine of US$200 per cell in breach, or an equivalent amount in Zimbabwe Gold (ZWG).

SMS quality will be assessed based on end-to-end delivery time and the SMS delivery success rate, with penalties of up to US$200 per cell in breach.

For data and internet services, violations can result in fines of up to US$5,000 per infringement, including fines for network outages exceeding three hours, with an additional US$5,000 for each hour thereafter.

Providers are also liable for failing to submit required network performance data.

Historical Context

Many Zimbabwean telecom operators, including Econet, NetOne, TelOne and Telecel, are struggling to meet quality standards, consistently delivering poor network services.

Telecel, TelOne and NetOne are the ones currently facing a dire risk due to poor network services and financial constraints.

NetOne is even facing management and financial crisis.

Its liabilities exceed its assets by a staggering ZWL$32 billion, raising serious concerns about its ability to continue as a going concern. The company posted a loss of ZWL$40 billion for the financial year ended December 31, 2022, significantly higher than the previous year's loss of ZWL$31 billion.

The latest Auditor General report also exposed a pervasive culture of fraud within the company, with high-profile cases of employees stealing airtime worth millions.

At one point, the government considered merging the operations of Telecel and NetOne, attempting to consolidate two struggling entities.

NetOne has been leveraging debt from China to enhance its infrastructure, securing a loan of US$71 million from the Chinese state financial institution, China Exim Bank.

This loan was intended to upgrade NetOne’s existing infrastructure, particularly its base stations, and expand coverage to areas with poor connectivity.

Econet has also faced criticism for subpar call and data services, with users reporting that their data purchases expire before they can be utilized due to poor network quality.

In 2023, Econet made strides by adding twelve 5G base stations after launching its 5G network in 2022 in collaboration with global technology partners Ericsson and ZTE.

The company aimed to have 22 5G base stations operational by April 2022, positioning itself as the first fifth-generation technology provider in Zimbabwe.

To further enhance network performance and service quality, Econet commissioned over 30 new sites across the nation in the first quarter leading up to May 2024.

The rules comes as the data space is being challenged by Starlink. Starlink offers high-speed satellite internet, presenting a potential alternative to the often unreliable terrestrial providers with the possibility of driving pioneers out of business in the long-run.

Since Starlink's launch, Liquid Intelligent Technologies, the largest internet access provider in Zimbabwe with an 80% market share, has reduced its unlimited internet packages by as much as 45%.  On the back of aiming to improve data affordability for Zimbabweans.

TelOne also announced plans to introduce flexible pricing models to remain competitive to making internet access more affordable as low-earth orbit (LEO) technology becomes increasingly available in the country.

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