Econet Wireless, Zimbabwe's largest telecoms firm, said its revenue generating capacity had been affected by a forced 35% tariff cut, a 5% tax on airtime top-ups and a levy of 5 cents on mobile money transactions as revenues for the full-year to February declined from $752.7 million to $746.2 million.

The mobile operator said connected subscribers for the period had risen 4.7% to 9.1 million while network investment was 55.4% stronger at $125.5 million. This pushed up Ebitda earnings by 14% to $285.6 million.

However, owing to growing government demands for the telecoms industry to contribute more to state coffers in the form of levies and taxes, Econet has had “to cut capital expenditure, and stop further employment” citing a difficult economic environment.

“The telecommunications industry by its very nature is constantly experiencing dramatic technological changes that transform the way customers demand and consume the services of telecom operators," said Econet Wireless chairman James Myers on Thursday.

This has seen pressure being exerted on the tradition voice category. Other telecom operators across the world have also started reporting slowing down revenues from voice telephony services as cheaper communication alternatives and instant messaging platforms take root, forcing telcos to shift attention to data services and platforms.

“The company has also rolled out the most extensive Wi-Fi system throughout the country. Many of these Wi-Fi sites have the unique capability for seamless transition from mobile broadband. During the period under review, income from broadband services rose by 42.3%, to $103.0 million,” the company said.

Myers said Econet would continue to ride on its diverse business model, which has seen it spread its tentacles into mobile insurance, mobile money and other micro sectors to retain and grow subscriber volumes.

It will also seek to enhance its revenue generating capacity and place more attention on cost optimisation although it wants the government to create a conducive policy environment, Myers explained.

“Whilst revenue enhancement will remain a key priority, the business has intensified its cost optimisation efforts in order to retain value in the local telecommunications industry, supportive policies will be required to allow local companies to grow their capacity.”