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A recent study by PwC Zambia has revealed that the telecommunications sector is grappling with infrastructure weaknesses that are causing frequent operational disruptions, network outages, limited coverage and inadequate disaster preparedness.
According to the PwC Zambia 2025 Telecommunications Report released last week, the rising demand for data was further straining existing systems, posing a threat to service quality across the country.
The report highlights the challenges faced by Zambia’s three major mobile network operators, noting that insufficient infrastructure resilience and widespread vandalism of telecommunications equipment are leading to costly service interruptions.
“Ensuring robust and resilient infrastructure is crucial to maintaining service quality and meeting the growing demand for data and voice services, while also addressing challenges posed by vandalism and the digital divide,” the study stated.
Beyond infrastructure, the report points to market saturation and fierce competition as critical hurdles. With mobile penetration nearing full capacity, operators are facing intense price wars that are eroding revenues from traditional services such as voice and SMS. The rise of non-traditional players like tech giant Starlink is adding pressure on already tight margins.
Another pressing challenge is the shortage of skilled professionals, including software engineers, cybersecurity specialists, network engineers and fintech experts. PwC noted that the ongoing battle for top talent complicates operators’ efforts to remain competitive and innovative in an industry undergoing rapid digital transformation.
The report stresses that the combined effects of market saturation, competitive pressures and the talent gap require strategic planning and adaptability if the sector is to sustain growth and profitability.
Meanwhile, the industry continues to operate under an increasingly complex regulatory framework. In 2024, mobile network operators faced stricter compliance obligations under the Cyber Security and Cyber Crimes Act (2021) and the Data Protection Act (2021), which demand heavy investments in data localisation, monitoring systems and security protocols.
The Zambia Information and Communications Technology Authority (ZICTA) has also intensified oversight, conducting real-time service quality audits and network performance evaluations. Operators that fail to meet set benchmarks risk penalties and reputational damage.
Tariff regulation remains another sticking point. Any proposed changes in pricing or introduction of new services must undergo lengthy approval processes, slowing down innovation and hampering operators’ ability to respond swiftly to market demands.
The 2024 ZICTA Annual Market Report further highlighted industry concerns over the high cost of compliance and overlapping regulatory requirements. Aligning with both ZICTA’s technical standards and broader legislative mandates continues to demand significant investment in legal, IT and administrative resources.
“To thrive in this environment, telecommunications operators must adopt proactive compliance strategies, including regular internal audits, staff training and sustained engagement with regulatory bodies,” the PwC report advised.
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