Telecommunications in Zimbabwe
The Problem
- Zimbabwe has two fixed telephone operators and three mobile
phone operators and one would have expected these companies
to extend access to underserved areas and through competition,
reduce the charges for basic access. On the contrary, the
charges have increased at alarming rates and most Zimbabweans
are still to make the first call on a telephone.
- This scenario
can be explained as follows. The incumbent operator inherited
legacy infrastructure that is difficult
and expensive to upgrade and its revenues are not reinvested
in infrastructure but are used to fund other initiatives.
- The mobile operators are funded through a combination
of debt and equity and have to repay the debt in foreign
currency. This leaves little surplus for network development
and in any event, as private companies, do not find underserved
areas profitable enough to invest in.
- The second national
operator is in a similar predicament and as it has no infrastructure,
has to fund its network
through debt. Consequently, it will not be able to service
the needs of underserved communities at affordable rates.
- The
policy and regulatory environment as espoused by the Postal
and Telecommunications Regulatory Authority needs
to be adjusted to promote the growth and development of
the telecommunications industry and allow more public private
sector initiatives to stimulate growth.
The Solution
- It is important to encourage public private sector partnerships
to drive development in the telecommunications industry and
the economy. Government has idle infrastructure that can
be adopted for use in telecommunications but is not being
used for public benefit.
- It is also important to encourage
Zimbabweans to invest in the industry and implement policies
for such investments.
While the sector has five licensed players already, there
is unsatisfied demand for telecommunications service and
more players with experience and infrastructure must be
allowed to utilise that infrastructure for development.
- It
is imperative to license parties with infrastructure, parties
that can leverage existing investment without being
encumbered by foreign debt. Such parties will be able to
adapt existing infrastructure to offer affordable services
in rural areas and urban underserved areas at the minimal
cost.
- Afritell is one such company.
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