Parliament has raised concerns over the level of competition in Zimbabwe’s telecommunications sector, warning that the dominance of a few operators could be affecting consumers and businesses.
The issue was raised in a National Assembly motion by Hon. Maoneke, which examines the growing concentration within the telecommunications industry.
Zimbabwe currently has three licensed mobile network operators, Econet Wireless Zimbabwe, NetOne and Telecel Zimbabwe. However, the motion notes that Telecel’s declining market share has weakened competition in the sector.
Although the industry is not legally a monopoly, Parliament says the market has developed into a highly concentrated oligopoly, with Econet and NetOne controlling more than 98 percent of the market after Telecel’s share fell below 2 percent.
According to the motion, limited competition may be contributing to higher costs, poor customer service, slower innovation and reduced bargaining power for consumers and businesses.
Parliament also raised concerns about differences in network coverage between urban and rural areas. While cities have generally benefited from improved 4G and emerging 5G services, some rural communities still depend largely on 2G and 3G networks.
The motion calls for changes to the legal and regulatory framework to promote greater competition. It also urges the relevant authorities to investigate possible anti-competitive practices, including abuse of market dominance, predatory pricing and collusion.
Other proposals include making it easier for new operators and mobile virtual network operators to enter the market, promoting infrastructure sharing, strengthening consumer protection and encouraging more investment in areas with limited network coverage.