The repeated failure of new entrants in Zambia's telecom sector, resulting in the regulator cancelling their operating licences, highlights a demanding operating environment shaped by high capital barriers, strict regulatory oversight and an entrenched market duopoly.
On Tuesday, the Zambia Information and Communications Technology Authority (ZICTA) cancelled the licence held by Beeline Telecoms Limited, trading as ZedMobile, under Section 18 of the ICT Act, after determining the licensee had not met key regulatory, operational and financial milestones.
Eng. Prof. Mundia Muya, ZICTA board chairperson, said the decision followed the authority's assessment of Beeline Telecoms' representations submitted on 10 September, together with a technical review of its operational status, after notices of intention to cancel were issued on 31 August.
ZICTA found the representations unsatisfactory and resolved to cancel the licence accordingly. Muya said the operator had failed to meet requirements relating to network rollout, minimum quality-of-service standards and payment of statutory fees, resulting in it no longer meeting the eligibility requirements prescribed under the Act.
Eng. Collins Mbulo, ZICTA director-general, said the authority would work to minimise inconvenience to customers, including facilitating refunds for unused airtime, bundles and other financial liabilities, in coordination with regulators such as the Bank of Zambia.
"The board remains committed to ensuring that Zambia's ICT sector is competitive, sustainable, well-regulated and responsive to consumers and the wider economy," Muya said.
Beeline and ZedMobile management had not commented at the time of publishing. ZedWallet, however, assured customers their funds were safe.
"We are working closely with the regulator to ensure that customers who wish to withdraw their funds can access them promptly," it said late on Tuesday, directing customers to ZedMobile Customer Care. "We appreciate your patience and understanding as we work to support our customers during this period."
Beeline was awarded its licence in February 2021 and began network operations in late 2024. It is the third operator to lose its licence in Zambia, after reaching one million subscribers and creating more than 200 jobs by September 2025.
In 2019, ZICTA cancelled Vodafone Zambia's network and service licences, citing a severe lack of technical and financial capacity after the local franchise's parent investors stopped funding it.
The following year, the regulator revoked the licence of UZI Zambia, awarded in 2018 to become the country's fourth mobile operator, after it failed to launch despite multiple extensions.
Airtel, MTN and state-owned Zamtel — Zambia's three dominant operators — have avoided licence cancellations, though ZICTA has repeatedly fined them for failing to meet minimum quality-of-service standards.
"The Zambian market is easy to enter, on paper, but incredibly difficult to survive in," said Patrick Miti, a Lusaka-based market watcher. "It requires immense, continuous capital and rapid execution to survive both the aggressive commercial competition and strict regulatory oversight."
Zambia's mobile market remains a duopoly in practice: Airtel holds about 48% of subscribers and MTN roughly 35%, according to ZICTA data, with the two incumbents controlling the best spectrum, mature nationwide tower infrastructure and deep customer loyalty — leaving new entrants an uphill task.
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