June 26, 2006

Mobile phone boom eludes Zimbabwe as crisis bites

2006_06_25t222428_450x301_us_telecoms_zimbabwe.jpg It seems Zimbabwe offers a sharp contrast to the rest of Africa, where mobile phone use is spreading rapidly as an alternative to unreliable and expensive fixed lines. Reuters reports.

"Foreign currency shortages have hamstrung network expansion and growth in Zimbabwe's mobile phone sector, capping penetration at around 5 percent of the population, compared to 70 percent in South Africa or around 40 percent in Namibia.

.. Inflation exceeds 1,000 percent, the highest in the world, unemployment has topped 70 percent and the national currency is losing value faster than any other.

Newspaper classified sections are packed with advertisements from unlicensed dealers offering mobile phone lines that are unavailable from operators or their dealers.

... Unlike in neighboring South Africa, Botswana or Namibia where a customer buys a SIM card over the counter, Zimbabweans have to wait for months before SIM cards come on the market, always resulting in a stampede.

Most of Zimbabwe's users are on the pay-as-you-go system, too poor to qualify for contract services. "

Related:- Ethiopia. The SIM card stampede