Potraz warns of severe disruptions to Telecom Services amid power shortages

The Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has issued a stark warning about severe disruptions to the telecommunications sector in Zimbabwe, with worsening power shortages threatening service delivery and revenue generation.

In its 2024 Third Quarter Sector Performance Report, released last week, Potraz highlighted the detrimental impact of persistent power cuts, which have led to widespread outages, leaving many areas without electricity for more than 18 hours daily. These power shortages, attributed to a combination of drought and outdated infrastructure, are placing additional strain on an already struggling telecommunications industry.

According to the report, the ongoing power shortages are driving up operational costs for telecom service providers, forcing them to rely heavily on expensive alternatives like diesel-powered generators to maintain network operations. This reliance on costly fuel sources is increasing the cost of service provision and placing upward pressure on service tariffs, which in turn is affecting consumers already burdened by economic difficulties.

"This has a negative bearing on the cost of service provision and revenue generation," Potraz noted in its report.

The telecommunications sector is also grappling with the added challenge of the rainy season, which is expected to exacerbate infrastructure issues. Potraz has warned of the heightened risk of damage to network infrastructure due to flooding, particularly in low-lying areas prone to heavy rains. The regulator emphasized the need for proactive measures by service providers to safeguard their infrastructure from potential weather-related disruptions.

"The onset of the rain season poses various challenges to network infrastructure, leading to service outages in some areas. This may call for proactive measures by service providers to safeguard network infrastructure," Potraz stated.

As a result of these combined challenges, the telecommunications sector has experienced increased instances of service disruptions. Mobile network operators, who rely on consistent electricity to power base stations and ensure uninterrupted connectivity, have been struggling to provide reliable services. In some regions, consumers have reported slower internet speeds, frequent call drops, and service outages, leading to widespread frustration among both consumers and businesses.

These disruptions are also affecting economic activity across various sectors, especially industries that rely on stable communication networks, such as banking, e-commerce, and logistics.

Despite these setbacks, the report revealed that the telecommunications industry has registered overall growth in all sectors except for traditional voice traffic, which saw a 7.46% decline in the third quarter.

"The trend of declining voice traffic is expected to continue due to increasing smartphone adoption and the rising popularity of third-party applications such as WhatsApp, Facebook Messenger, and Apple's FaceTime, which substitute traditional voice calling. This is a global phenomenon, with predictions that the mobile network operators' market share for voice traffic will fall from 79% in 2023 to 72% in 2028," Potraz explained.

At the same time, mobile voice traffic is gradually shifting to Voice over Long-Term Evolution (VoLTE), as telecom operators expand their deployment of high-speed 4G and 5G base stations to meet growing demand for data connectivity. Potraz noted that this shift towards higher-speed data services could open up new opportunities, particularly in areas like healthcare and the Internet of Things (IoT).

Despite the challenges, Potraz is optimistic about the future of the telecommunications industry and the potential for growth in areas like high-speed data services. However, it warned that the ongoing power shortages and seasonal weather risks must be addressed to ensure a stable and reliable service delivery environment.