Telcos revenue down 4 percent in Q2 to US$252,6 million

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The telecoms industry has been hit by a combination of sluggish economic conditions, a regulated fall in traditional revenue streams and availability of cheaper options.

THE postal and telecommunications sector reported revenue of US$252,63 million, a decrease of four percent from the US$262,9 million due to the continued decline in mobile traffic in favour of Over The Top (OTT) Services.

According to stats availed by the Postal and Telecommunications Regulatory Authority, mobile voice traffic declined by 1,4 percent to 1,256,028,458 minutes from 1,274,290,859 minutes recorded in the previous quarter as subscribers continue to migrate towards cheaper OTT services.

Fixed voice traffic also declined 3,5 percent to 164,025,120 minutes from 169,948,500 minutes recorded in the previous quarter.

The telecoms industry has been hit by a combination of sluggish economic conditions, a regulated fall in traditional revenue streams (mobile phone tariffs) and availability of cheaper options. At the same time Expected content and connectivity-related revenues have not risen quickly enough to compensate for the declining revenues.

Active mobile subscribers in the second quarter of 2015 were 11,949,791. This represents a 0,8 percent increase from 11,859,155 subscribers in the previous quarter.

Fixed telephone subscribers increased by 1,1 percent to reach 332,866 from 329,252 recorded in the previous quarter.
The number of active internet subscriptions as at the second quarter of 2015 was 5,815,518, a 0.6% increase from 5,782,491 recorded in the previous quarter.

Potraz said more investment in the quarter was towards fibre. “Total Investment in the sector in the second quarter was US$46,164,290. Much of the investment by IAPs has been in fibre due to the growing demand for high speed internet. This has seen operators increasing their equipped international internet bandwidth capacity to meet the growing demand,” said Potraz.

The fixed tele-density increased to 2,6 percent from 2,5 percent recorded in the first quarter of 2015. As a result of the increase in active subscribers, the mobile penetration rate increased by 0,7 percent to reach 91,5 percent from 90,8 percent recorded in the previous quarter.

The internet penetration rate increased to 44,5 percent from 44,3 percent recorded in the previous quarter. Lit/equipped International internet bandwidth capacity increased by 13,2 percent to reach 30,520Mbps from 26,950Mbps recorded in the previous quarter.

According to the data, the total value of deposits on mobile money platforms increased 25,8 percent to record US$512 million from US$407 million recorded in the previous quarter.

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