Mobile network operator,
Traffic volumes declined across the board from the previous quarter with voice traffic down 8 percent, data traffic 30 percent and SMS traffic 35 percent.
In a quarterly update released recently, the MNO said the decline in traffic volumes followed "the headline tariff adjustments in
The business had to "customise consumer packages to maintain affordability in light of the depressed consumer disposable incomes whilst pricing within the confines of responsible business practice".
However, despite this clear evidence that the consumer is constrained, the business believes current tariffs are at "sub-economic levels".
"Our tariff continues to lag behind inflation and given the rapid local currency depreciation since
While the consumer might be constrained, sub-economic tariffs will put a constrain on investment outlay, which is critical for a technology driven company such as
Sub-economic tariffs also threaten the viability of business considering the high operating costs in the economy.
Erratic grid power supply and escalating fuel costs significantly impacted base stations running costs during the period under review, which speaks to the need for economic tariffs.
While the third quarter performance was negative, year-on-year performance for the third quarter 2020 against third quarter 2019 was positive.
Voice traffic volumes were up 20 percent, data up 26 percent and SMS up 7 percent.
According to
However, going forward, the depreciation of the local currency is expected to negatively impact the financial performance of the group.
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