High Data Costs and Spotty Connectivity Dominate CSZ Summit Day 2 Discussions

They say sequels rarely live up to the original, but Day 2 of the CSZ Summit 2024 was decidedly better. This was despite one session being canceled because an unnamed airline had some speakers stuck in Bulawayo, over 400 km away from the venue in Victoria Falls.

The day began with Liquid Intelligent Technologies’ Abraham Makamba (Executive Managed Services, Liquid Intelligent Technologies) discussing Digital Highways: Pioneering the Next Era of Connectivity in Zimbabwe.

He was then joined on stage by the following panelists, where the real excitement began:

• Brian Chikwasha – Engineer: Core Network & Data Centre Planning, Econet Wireless
• Samuelle Dimairho – CEO, Aura Group
• Eng. Nicholas Muzhuzha – Manager: Network Services and Standards, Postal & Telecommunications Regulatory Authority of Zimbabwe (POTRAZ)

The panel, moderated by Allen Saruchera, a Digital Transformation Consultant, tackled the topic Navigating the Future of Internet Connectivity in Zimbabwe.

There was much to discuss, but as you can imagine, the conversation shifted to high data costs when the floor was opened to questions.

High data costs

This was the ideal platform to raise concerns, as the panel included representatives from:

• The largest fixed internet provider (Liquid)
• The largest mobile network operator (Econet)
• One of only two official Starlink resellers (Aura)
• The regulator (POTRAZ)

Liquid’s Makamba started with a gentle reminder: “Zimbabwe is a landlocked country, and we use a physical fibre cable going to the oceans for the undersea cables.”

He explained that there are costs involved in running fibre through neighboring countries, which is hard to dispute. However, this argument falters when you consider that Liquid’s prices in Zambia—a similarly landlocked country—are significantly cheaper.

Samuelle from Aura added, “I think our taxes in Zimbabwe, generally, across various sectors are high. That’s also a factor that contributes to higher costs to the end user.”

This point is hard to argue against. Finance Minister Mthuli Ncube has perfected the art of taxation, and internet service providers are among the hardest hit.

Saruchera then voiced the frustration shared by many: the sudden, unannounced tariff increases that users wake up to. He asked POTRAZ what the broader ICT industry could do to influence these decisions.

The regulator responds

Eng. Muzhuzha, who coincidentally sits on POTRAZ’s Tariff Committee, provided insight. He explained that POTRAZ must balance keeping tariffs affordable while ensuring operator viability, aiming for neither exorbitant profits nor unsustainable losses.

On the tariffs themselves, Muzhuzha said, “Our tariffs are cost-based… There are many factors that influence the tariffs, the costs that drive them. For example, where there is no power, as is currently the situation in a number of places. Those places have to use generators.”

He elaborated that the challenges go beyond just fuel costs for generators; theft and vandalism, complicate matters further. The situation becomes even more challenging when operators rely on solar energy, as batteries are a prime target for thieves.

While Muzhuzha acknowledged the impact of electricity shortages on service quality, he emphasized that these factors aren’t excuses but realities operators must contend with.

However, he skirted around fully addressing how users could directly influence tariff decisions. Essentially, he suggested that simply being customers indirectly involves users in the tariff-setting process. Make of that what you will.

Internet penetration

CSZ Treasurer Tjiyapo Velempini shifted the focus to Zimbabwe’s poor internet connectivity, especially in rural areas.

Speaking bluntly, he said, “I think this animal in the room has not been properly addressed… We might need a follow-up meeting so that we dissect the critical issues.”

He added, “From what I can hear on the panel, somebody in Chendambuya… can forget about having broadband. We’re all looking at nice metrics. There’s nothing revolutionary that is coming out of this discussion.”

His remarks were met with laughter and agreement from the audience. The arguments about high data costs and poor rural connectivity felt like old news to many.

Mr. Velempini, affectionately known as ‘Mr. TV,’ then called out operators for passively accepting heavy taxation from the Finance Minister. He urged them to push back rather than allowing over-taxation to persist.

He also accused operators of using currency issues as a scapegoat to hide super profits, even after acknowledging that currency challenges are real. His closing remarks earned applause from the audience.

The moderator then addressed the panelists, saying, “I will not ask you to comment on that one because of time, but I think you have heard the viewpoint.” The room laughed, though it felt wrong for the panelists to escape without addressing these strong criticisms.

To be fair, the panel had exceeded its time limit, but it still felt wrong that the panelists did not have to respond to any of that.

There was more

Other intriguing topics arose during the Minister of ICT’s session. In addition, there were some eye-opening statistics from cybersecurity firm Sophos. However, this article has gone on long enough—those insights will follow in a subsequent piece.

Also read:

• Exploring 4IR, AI, IoT, and More: Highlights from Day 1 of the CSZ Summit 2024
• Min of ICT says the landlocked status of Zim cause of high data costs, Zambia says ‘what?’