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Considering that the Internet penetration rate is now at 50,1 percent, the implication (according to Potraz) is that out of every 100 people, there are 50 Internet subscriptions. It is therefore prudent for businesses to think of Internet access as a strategic imperative and strive to offer convenient, mobile-based services and solutions to their clients

Delta Milayo Ndou #DigitalDialogue

A recent perusal of the second quarter report compiled by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) was akin to looking into a crystal ball because a discerning reader can glean that mobile-based technologies have taken hold — hence the question is the likely impact?

The reality of increased adoption of mobile-based technology, a reliance on mobile money transactions, a growing appetite for data and Internet access as well as preference for Internet-enabled communication channels should provoke introspection among businesses.

Given that a total of 1,8 million Gigabytes of mobile data were consumed in the second quarter of 2016, constituting a 23 percent increase from 1,5 million Gigabytes consumed in the previous quarter, an increase in Internet and data utilisation is evident.

Such an appetite for internet access is unlikely to abate especially as Potraz recently announced plans to engage mobile service providers to slash prices of data within the next month. For local media entities, the likelihood of accelerated and escalating reader migration from print to digital is high as more of our readers develop an appetite to consume news via their mobile devices.

For local businesses, a shift towards providing mobile-based solutions might pay dividends as each successive quarterly report from the regulatory body indicates a steady rise in utilisation of mobile devices and Internet-enabled services. In the case of media entities, the focus should be on how to package news with a gadget-centric audience in mind particularly since the pricing of our print copies faces stiff competition from the pricing of data. For the same dollar, a reader can either buy a print paper or buy data and have access to several news sites that meet their informational needs. The more the Internet penetration rises, the more the mobile penetration rises and the more data is utilised — new opportunities for and possible threats to existing businesses will emerge.

As one medium rises, another declines

Considering that the Internet penetration rate is now at 50,1 percent, the implication (according to Potraz) is that out of every 100 people, there are 50 Internet subscriptions. And since all the mobile operators experienced an increase in Internet and data utilisation in the second quarter of 2016, it is prudent for businesses to think of Internet access as a strategic imperative and strive to offer convenient, mobile-based services and solutions to their clients. As it stands, the telecommunication revenues have reportedly declined by 11,8 percent to record $228 748 120 from $237 771 722 recorded in the first quarter.

Potraz reported that the total mobile revenues for 2016 declined by 3,7 percent to record $161,5 million from $167,7 million recorded in the previous quarter fuelled by the decline in voice traffic. Simply put, the number of people that are prepared to make calls via mobiles is declining owing to the fact that there are other alternatives available such as WhatsApp, Viber, Skype and other Internet-enabled communication mediums often referred to as “over-the-top” (OTT) services. The existence of these mobile-based, Internet-enabled mediums of communication simply means that mobile users are less incentivised to make voice calls, which are expensive compared to the cheaper alternative OTT mediums. Hence as one medium of communication (voice calls) declines, it appears other Internet-enabled mediums are on the rise (OTT).

The findings by Portraz indicate that the substitution of mobile voice service with Over-the-Top services has greatly contributed to the overall decline in voice traffic.

The fact that national voice traffic declined despite the numerous mobile voice promotions that were in the market in the second quarter of 2016 points to declining consumer demand.

The prevalent substitution of mobile voice services with Internet-enabled alternative forms of communication speaks to considerable digital literacy among users who are able to identify, adapt to and use new mediums of communication.

The emergence of a critical mass of digitally literate mobile users presents opportunities to promote e-commerce and introduce a variety of technology-driven solutions that users might be prepared to embrace as they continue to familiarise themselves with numerous online platforms and tools.

Mobile money: When a technology takes hold

Just a few years ago, the idea of keeping money inside your phone or being able to transact using your mobile device was rather absurd and invited scepticism. Fast-forward to 2016, one finds that the total number of active mobile money subscriptions increase have surpassed the 3 million mark indicating that mobile money has gained wide acceptance as a technology-driven solution.

An active mobile money subscription, according to Portraz, is one that has used mobile money services to send or receive money, purchase airtime or to make payments in the last 90 days. Potraz reports that of all the cash–in transactions, 99 percent were made on the EcoCash platform whereas the TeleCash and One-Wallet platforms processed 0,94 percent and 0,06 percent respectively.

Econet’s enjoyment of the largest share of the mobile money cake can be attributed to its unrelenting pursuit of technology-driven solutions, innovative and aggressive marketing tactics as well as a willingness to dig deep in terms of investing in product development.

They clearly adhere to the adage that you have to spend money to make money. In the context of a liquidity crunch, any investment in product development or innovation is likely to be consigned to the back burner as business leaders tackle the more immediate concerns but perhaps mobile money can serve as an illustration of the windfall that can come when a technology takes hold.

Instead of deferring innovations to a later date when things are better and the economy has improved, perhaps it is time to consider how mobile-based technologies can help bolster your business at a time when Internet penetration continues to rise and barriers such data costs are being actively tackled.

Delta is Head of Digital at Zimpapers. Follow her on Twitter: @deltandou