- Revenue increased by 9%
- voice and data volumes incomes increased by 32% and 46% respectively
Econet Wireless Zimbabwe, ZSE-listed giant, has released its Q3 trading update with pleasing financial results marking its territory in the digital service provider (DSP) space. The transformation by the group will enhance service delivery and unlock several opportunities for a wider base of customers in fulfilment of the company’s vision of a digitally connected future that leaves no Zimbabwean behind.
The group has however stressed the issue of foreign currency deficiency to cater for the supplies needed for expansion. This focal point has been a restraining factor in the expansion of the telecommunication industry claiming the after-remittance value cannot fully sustain the maintenance of the industry.
Despite these challenges, for the 9 months that ended 30 November 2022, voice and data volumes increased by 32% and 46% respectively relative to the same period in the previous year. To improve the quality of service, the group plan to modernize the current core network to one that is virtualized to increase their ability to efficiently allocate network resources.
However, the latest release of the local usd$ concentration in the market in the market possibly contradicts the accused shortage of forex. About 74% of the transactions are recorded in the USD currency and this dismisses the accusation. The market is typically oligopolistic and thats gives them a liberty to operates within uncompetative margins, which leaves no incentive to finance their network growth and maintenance.
During the quarter under review, POTRAZ, the sector regulator, authorised two separate tariff increases of 61% in September and November. The group in its report argued that the tariff increases were not adjacent to inflation increases and as such their impact on operational expenditure was insignificant.
Whilst these tariff reviews provided some relief in aligning operating costs with the current inflationary operating environment, they were below the inflation rate in the economy. Zimbabwe’s current telecom tariffs remain below regional benchmarks, resulting in investments in the sector being undermined, reads the trading update
The group remains optimistic about persisting with network upgrades. FY 2023 challenges a company as there is a potential player, Space X -Star link, who will fuel up the competition in the industry. This will put the company a task in delivering reliable services.
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