Zimbabwe’s postal and telecommunications sector continued to demonstrate a complex but telling transformation in the third quarter of 2025, reflecting both the resilience of digital demand and the mounting pressure on operators grappling with rising costs and shifting consumption patterns. While headline indicators point to growth across key connectivity metrics, a deeper reading of the data reveals a sector being reshaped by data-centric usage, infrastructure modernisation, and uneven performance across subsectors.
Mobile telephony remained the backbone of the sector, with active mobile subscriptions rising beyond 16.4 million, pushing the mobile penetration rate to over 104 percent. This level of penetration, which exceeds the national population, underscores the continued reliance on multiple SIM ownership, driven by network optimisation, pricing strategies and service differentiation. Econet and NetOne sustained subscriber growth, while Telecel’s contraction highlighted persistent competitive and operational challenges within the market. The gradual consolidation of market power among dominant players remains evident, raising important considerations around long-term competition and consumer choice.
Usage patterns further reinforced the sector’s evolution. Mobile voice traffic recorded a strong quarterly increase, driven largely by growth in on-net and inter-network calls. However, this rise does not signal a revival of traditional voice services, but rather reflects the effectiveness of bundled offerings that integrate voice within broader data-driven packages. At the same time, declines in international outgoing traffic and roaming activity confirmed the steady migration of communication to Internet-based platforms.
The most decisive shift emerged from Internet and data usage. Mobile data traffic grew sharply to over 144 petabytes, while fixed Internet traffic expanded at an even faster pace, reflecting rising consumption of bandwidth-intensive services such as video streaming, cloud computing, remote work platforms and digital financial services. These trends place Zimbabwe firmly within the global trajectory of accelerating data demand and underline the growing role of connectivity as a pillar of economic and social participation.
Infrastructure deployment mirrored this shift. The continued rollout of LTE and 5G base stations, particularly the strong growth in 5G deployments, signalled a strategic move toward next-generation networks capable of supporting advanced digital services. While 5G coverage remains largely urban and limited in geographic reach, its expansion reflects long-term positioning for emerging technologies, including artificial intelligence-enabled applications. However, persistent disparities between urban and rural coverage continue to raise concerns about inclusive digital development.
Financial performance across mobile network operators painted a more strained picture. Despite steady revenue growth, operating costs rose at a significantly faster pace, leading to deteriorating cost-to-income ratios. The sharp decline in capital expenditure during the quarter suggests a cautious investment posture, possibly influenced by currency pressures, rising energy costs and the need to stabilise operational margins. This trend raises questions about how sustainably operators can maintain network expansion while absorbing escalating cost burdens.
In contrast, Internet Access Providers recorded improved operational efficiency, with revenues increasing as operating costs declined. The rapid growth in VSAT subscriptions, largely driven by Starlink, introduced a disruptive element into the broadband market, reshaping access models and intensifying competition, particularly in underserved areas. This development presents both regulatory challenges and opportunities for expanding nationwide connectivity.
Fixed telephony continued its structural decline, with PSTN voice traffic steadily falling as consumers shift toward mobile and data-based communication. While fixed-line subscriptions showed marginal stability, usage trends confirm that traditional voice services are increasingly peripheral, reinforcing the need for operators to pivot towards data-centric and enterprise solutions.
The postal and courier subsector faced mounting pressure, with volumes declining sharply and outlet numbers contracting. The collapse in international letter traffic reaffirmed the long-term displacement of traditional mail by digital communication. Although revenues grew modestly, rising costs pushed the sector further into unsustainable operating territory, highlighting the urgency for operational restructuring and deeper integration with e-commerce and logistics ecosystems.
Looking ahead, the sector’s outlook remains mixed. Strong growth in Internet and broadband penetration demonstrates sustained demand for digital services and reinforces the strategic importance of ICTs in driving economic productivity, innovation and inclusion. The approval of the National Artificial Intelligence Strategy further elevates the role of telecommunications infrastructure as a foundation for future development. However, sustaining momentum will require careful balancing of investment, affordability, cost control and regulatory adaptation.
Overall, the third quarter of 2025 revealed a sector firmly in transition, moving away from voice and legacy services toward data-driven ecosystems. The challenge for operators, regulators and policymakers will be to ensure that digital expansion translates into sustainable profitability, competitive markets and inclusive national development.
