For some years now, three mobile network operators have dominated the Zambian mobile network sector, Airtel, MTN and Zamtel. Zamtel is state owned and has struggled to be profitable, leaving this lucrative sector to practically be a two horse race between Airtel and MTN in Zambia.
The addition of a fourth mobile operator, Unitel’s Uzi was seen as inevitable, but this has gone horribly wrong. Though a big name brand and global telcos like Orange which has massive experience in Africa would have been better to bring in a healthy battle and deliver more innovative services and world class standards to benefit consumers, the ZICTA team opted for little know Unitel.
UZI license extension expired at the end of May 2020 and the Zambian Business Times – ZBT confirmed with ICT regulator ZICTA that indeed, there were no more extensions to be made. This is why the Consumer Unity and Trust Society (CUTS) has expressed its disappointed by the mobile network operator Unitel/ UZI’s failure to enter the Zambian market.
In a statement made available to Zambian Business Times – ZBT, CUTS researcher Aquila Ng’onga says the entry of the fourth telecommunication company would have brought up the much needed competition and would give consumers a fair price and more choice
“The entry of Unitel/Uzi Zambia into the mobile phone network sector would have been beneficial for consumers by providing them with choice, the possibility of better-quality voice and data service, and the setting of better price points”, he said.
Ng’onga says that in the wake of COVID-19, there has been an increase in digital and online platforms to maintain and promote social distancing and that majority of the consumers in Zambia access the internet through mobile phone services.
“Most consumers in Zambia (over 7 million) access internet through mobile broadband services via a mobile phones while only less than 2.7 percent of Zambian consumers access internet through other means as fixed internet services”, he said.
He stated that this shows the importance of having a third (non-state owned) mobile network operator to ensure that consumers get data at the best price and stressed that people make wise decisions during this time when we depend heavily on mobile network services.
“Our observations show that Airtel and MTN seem to have a similar pricing mechanism around their daily, weekly and monthly data bundles and are higher than Zamtel’s pricing for bundles”, according to CUTS.
In addition, he disclosed that the mobile network providers have several attractive promotions like Ikali, Cheza 4eva and Local Ni Laka offered by Airtel, Zamtel and MTN respectively, however he says that CUTS research reveals that Zamtel has more options in terms of 30 day bundles.
As we try to cope with the covid 19 pandemic, CUTS urges mobile network operators to reduce the data prices, zero rate relevant websites for educational purposes to support low-income households and consider to provide such offerings even beyond the pandemic period.
“We also urge the government, ZICTA as well as MNOs to take steps to addressing the digital divide by increasing access in rural areas in response to the low internet penetration rate that unfairly disadvantages learners, businesses and individuals located there”, he said.
UZI Zambia whose majority shareholder is Unitel International Holdings BV registered in the Netherlands secured a very competitive mobile phone network license in March 2018 and was first scheduled to launch in December 2018.
Zamtel has the potential to rival Airtel and MTN, and offer credible competition, but the state owned mobile network operator has some work to do in driving efficiently and it’s average earnings per user. The IDC and Minister of Finance had given an ultimatum for Zamtel to turn around its financial performance but it remains to be seen if the telco will become profitable this year.
