eBusiness Weekly
Tawanda Musarurwa
Liquid Telecommunications Zimbabwe continues to dominate the local Internet services market, grabbing a 58,5 percent stake of internet access provider (IAP) revenues in the last quarter of 2018.
Numbers from the sector regulator show that the local IAP’s combined revenues for the fourth quarter of last year rose by 13,2 percent to $69,7 million from $61,5 million in the previous quarter.
And investments from the four companies grew by a significant 44,7 percent to $20,8 million in the fourth quarter from $14,3 million previously.
State-owned IAP TelOne comes in second with a 25,1 percent stake of the fourth quarter revenues.
Powertel and Dandemutande took up 9 percent and 4,1 percent of the revenues and Telecontract had 1 percent of the revenues.
Statistics from the Postal and Telecommunications Regulatory Authority (POTRAZ) also show that Liquid Telecom accounted for the biggest share of Used International Incoming Bandwidth Capacity.
The Econet Wireless Zimbabwe subsidiary, accounted for 61,1 percent of Used International Incoming Bandwidth Capacity for the fourth quarter.
State-owned fixed telecommunications operator TelOne came in second, accounting for 32,2 percent, and the balance is taken up by Powertel and Dandemutande at 4 percent and 2,7 percent, respectively.
Liquid Telecom Zimbabwe has developed the largest fibre network in the country providing broadband voice and data in the country.
But despite all its growth, parent company Econet Wireless Zimbabwe, has put forward plans to sell the IAP, but with broader plans in mind.
Last year, Econet Wireless Zimbabwe announced plans to sell its stake in Liquid Telecoms Zimbabwe with a view to acquire a stake in the bigger Liquid Telecoms Holdings.
Econet said it will dispose of its 51 percent stake in Data Control and Systems (1996) Limited (which trades as Liquid Telecommunications Zimbabwe) in exchange for shares in Liquid Telecommunications Holdings worth $135 million.
Zim internet sector looking up
The country recorded a 7,5 percent rise
in internet penetration last year to 62,9 percent as ADSL and fibre connections improved.
The country’s internet penetration rate has been around 50 percent for the past decade, despite the growing significance of internet in all spheres of life.
Said POTRAZ in its 2018 report: “The internet penetration rate increased by 7,5 percent to reach 62,9 percent from 55,4 percent.
Leased lines and WiMAX subscriptions have been gradually declining as the uptake of ADSL and fibre improves.”
The 2018 numbers also showed that the total number of active internet subscriptions as at the end of that period were 8 723 242, which was a 13,4 percent growth from 7 690 134 recorded in the third quarter of 2018.
