Page 95 - SAMENA Trends - December 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

remove from their networks equipment that the US benefit for low-income Americans, and USD7 billion
government considers a national security risk. The to increase access to broadband. Reuters quotes
FCC’s order featured a reimbursement program to a fact sheet on the legislation as specifying that the
support the replacement of relevant equipment by bill ‘establishes a temporary, emergency broadband
smaller providers, and was initially expected to cost ‘at benefit program at the FCC to help low-income
least USD1.6 billion’. The new bill reportedly expands Americans, including those economically challenged
the eligibility for financing to providers with ten million by the COVID-19 pandemic, get connected or remain
or fewer subscribers, although operators with two connected to broadband.’ Other initiatives supported
million or fewer subscribers are to be prioritized. In June by the bill include the expansion of broadband
this year, a separate order formally identified Chinese infrastructure to underserved Americans in rural areas
vendors Huawei and ZTE as security threats, barring and to minority communities, and the development of
operators from using money from the USD8.3 billion more accurate broadband availability maps to allow
Universal Service Fund (USF) to purchase equipment the FCC to better allocate government funding for
from the firms. Meanwhile, the relief bill also includes broadband development.
funding of USD3.2 billion for an emergency broadband (December 21, 2020) commsupdate.com

Data and internet services are expected to continue percentage points to command 69,7 percent of total
driving the telecoms sector growth, according to market share, while NetOne lost 9 percentage points
regulator Postal and Telecommunications Regulatory to close the quarter with 29,1 percent of market share,
Authority of Zimbabwe (POTRAZ). This comes as while Telecel catered for the remaining 1,2 percent.
businesses in Zimbabwe have embraced digitalization, During the quarter under review, active Internet and data
Zimbabwe accelerated by the outbreak of the Covid-19 pandemic. subscriptions grew by 5,6 percent to reach 8 726 904.
The pandemic has necessitated use of digital platforms As a result, the internet penetration rate increased to
to reduce physical interaction as part of measures 59,9 percent from 56,7 percent recorded in the previous
to reduce the spread of the disease. According to a quarter. POTRAZ also highlights that a huge growth in
POTRAZ 2020 third quarter report, there was a surge in equipped international Internet capacity was recorded
use of Internet and data services during the period as in the third quarter under review following expansion
the market shifts to digital platforms. With no immediate by Liquid, TelOne and Dandemutande. “As demand
solution on sight for the pandemic, it is anticipated that for Internet and data increases due to the adoption of
data usage will continue to remain critical going forward. e-learning, telecommuting, e-health, IAPs will need to
“The Covid-19 pandemic has demonstrated the critical continue expanding their bandwidth capacities to meet
importance that telecommunications infrastructure the demand,” reads part of the report. Just like any
plays in keeping businesses, governments, and other sector of the economy, the performance of the
societies connected and running,” said POTRAZ telecoms sector going forward will largely hinge on the
director-general Dr Gift Machengete in an update. “The general economic environment. Availability of foreign
sector has been critical in keeping the global economy currency, exchange rate and inflationary pressures will
moving under the lockdown by providing business- have a direct impact on service tariffs for the sector.
critical connectivity and resilience, facilitating work- (December 30, 2020) herald.co.zw
from-home arrangements and keeping individuals
and societies connected and informed, with access to The government has allocated ZWL8 billion (USD89
essential services during mandated social isolation. million) to improve ICT services in the country in 2021.
As a result, many telecom players providing broadband The funds will go towards the rollout of fiber-optic
have benefited from a surge in the traffic of data as networks, improving access to online public services,
shown in this report. “Data and Internet services will and the development of digital TV services. State-
continue to drive industry growth,” he said. According owned cellco NetOne is also investing USD18 million
to the third quarter report, mobile internet and data on the rollout of 4G equipment in 2021 financed by a
grew by a 43 percent to record 14,878 terabytes from USD71 million loan from China Eximbank. Meanwhile,
10,407 terabytes recorded in the second quarter of the Universal Services Fund will contribute USD6
2020. The report also shows that in-bundle data million to deploy ten base stations in rural areas which
constituted 95,1 percent of total mobile Internet and will be shared by the country’s three mobile operators.
data usage, up from 94,1 percent recorded in the Biztech Africa quotes Finance Minister Mthuli Ncube
second quarter of 2020 as consumers will always seek as saying: ‘In order to improve access to ICT services,
to maximise their utility with the cheaper promotional the government will facilitate deployment of broadband
bundles instead of out-of-bundle data rates. Econet infrastructure and investments in last mile connectivity
maintained its market dominance adding another 8,9 by industry players that will ensure affordable,

95 DECEMBER 2020