WhatsApp eclipses SMS

MOBILE telecommunication companies’ short message sending (SMS) platforms registered an average decline of 6,9 percent for the third quarter ended September 30 2014 due increased usage of messaging platforms such as WhatsApp. According to the Postal and Telecommunication Regulatory Authority of Zimbabwe (Potraz)’s report for the third quarter, cross network traffic declined by 9,8 percent whereas net on net SMS declined by 0,2 percent.

Potraz said net on net traffic declined by 8,8 percent despite the numerous on-net promotions on the market. “Outbound roaming traffic also declined by 9,8 percent,” said Potraz.

WhatsApp is a cross-platform messaging app, which works across Android, iOS, Blackberry, Symbian and Windows Phone platforms. Users can message each other as well as transfer pictures and other multimedia content at a minimal cost. WhatsApp uses the existing data plan and hence there are no additional charges for the messages sent.

The usage of WhatsApp has caused a steady decline in the usage of traditional messaging platforms such as SMS and multimedia messaging service (MMS), and consequently a decline in revenue generated through SMS/MMS for carriers. WhatsApp now happens to be the most widely used messaging application in the world.

A forecast by Deloitte Touche in England suggested that the number of instant messages sent globally in 2014 would be double the volume of SMS messages. In 2012, 11 instant messages were sent for every ten SMS messages. The three mobile network operators Telecel, NetOne and Econet, however generated a total of US$247,7 million during the period under review, a nine percent increase in revenue from US$227,2 million recorded in 2013.

Total investment increased by 10 percent to reach US$46,9 million from US$30,7 million recorded in the second quarter of 2014. Potraz said the telecommunications sector had undergone major phases in its growth and technological advancements over the period. With the sector continually innovating new services and products, the regulator said there was no doubt that it will continue to expand.

“In the internet/data market, mobile data/internet market continued to dominate the sector with majority of subscriptions being through the mobile phones,” Potraz said.

The ease of access of mobile internet coupled with the popularity of social media has and will continue to contribute immensely to the growth of internet usage in Zimbabwe.

The report shows that mobile money transfer service also recorded positive growth during the quarter under review.  The total number of mobile money transfer subscriptions grew by 16,3 percent during the period under review to reach 4,9 million from 4,2 million subscribers recorded the previous quarter. The total value of transfers and transaction on mobile money services increased by 35,8 percent to record US$403,1 million from US$296,8 million recorded in the previous quarter. The number of agents also increased by a record 4 181 as mobile operators sought to increase their distribution networks for the mobile money services.

“This service is expected to continue recording positive growth in the coming periods,” said Potraz

The fixed line network market segment recorded marginal growth in subscribers over the period under review. Total active fixed lines increased by 4,4 percent to reach 340 852 from 326 576 recorded in the second quarter of 2014. This increase was driven by Asymmetric Digital Subscriber Line (ADSL).

ADSL is a high speed internet access service that utilises the existing copper telephone links to send and receive data at speeds that far exceed conventional dial up modems. “The fixed teledensity was 2,6 percent up from 2,5 percent recorded in June 2014,” said Potraz.

The report said net on net traffic declined by 0,7 percent to record 83,3 million minutes from 83,9 million minutes recorded in 2013.  Net on net traffic for the fixed network was expected to grow given the increase in subscribers during the third quarter of last year. Outgoing traffic to the mobile networks declined by 0,7 percent whereas incoming traffic from the mobile operators increased by 1,8 percent.

“There was a remarkable increase in the flow of traffic between the fixed network and VoIP operators. Outgoing traffic to Voice over internet protocol (VoIP) operators increased by 41 percent to record 234 542 minutes from 166 329 minutes recorded in the previous quarter.

On the other hand voice traffic from the VoIP networks to the fixed network increased by 8,6,” percent. VoIP is a methodology and group of technologies for the delivery of voice communications and multimedia sessions over Internet Protocol (IP) networks, such as the Internet.

During the period under review, total international outgoing traffic increased by 2,2 percent to record 7,9 million minutes from 7,8 million minutes recorded in 2013. International incoming traffic increased by 9,6 percent to record 15,9 million minutes from 14,6 million minutes recorded in the previous quarter.

Internet subscribers increased by one percent to reach 6,2 million from 6,1 million recorded in the previous quarter. As a result the internet penetration rate increased by 0,5 percent to reach 47,5 percent from 47 percent recorded in the second quarter of last year.

Major highlights during the third quarter 2014
-The total number of active mobile subscribers increased by 2,6 percent to reach 11,4 million from 11,1 million subscribers recorded in the previous quarter.
-The total number of active fixed telephone subscriptions increased by 4,4 percent to reach 340 852 subscribers from 326 576 subscribers recorded in the previous quarter.
-Internet penetration rate increased by 0,5 percent to reach 47,5 percent from 47 percent recorded in the previous quarter.
-The total number of base stations (2G,3G & LTE) increased by an additional 117 base stations to reach 4 603 from 4 486 base stations recorded in the previous quarter.
-Available International internet bandwidth capacity increased by 32,4 percent to reach 21 840Mbps from 16 498Mbps recorded in the previous quarter.

newsdesk@fingaz.co.zw