Title: The drop in mobile telephony turnover in the DRC: a worrying trend for operators
Introduction :
In the first quarter of 2023, the mobile telephony sector in the Democratic Republic of Congo (DRC) recorded a significant drop in its turnover. According to a report published by the Observatory of the mobile telephony market, this decrease amounted to 13.27% compared to the previous quarter. A worrying situation that highlights the challenges faced by mobile operators in the country.
A change in the basis of the declaration of turnover:
The main reason for this drop is linked to a change in the reporting basis for turnover relating to mobile money services. From now on, only commissions paid by mobile financial companies to mobile network operators are taken into account, thus excluding the financial transactions themselves. This change had a negative impact on the operators’ overall turnover.
A decrease in ARPU:
ARPU, or Average Revenue Per User, also experienced a drop during this period. Indeed, each subscriber reported an average revenue of $2.88 per month, down $3.68 from the previous quarter. This decrease can be attributed to a reduction in subscriber spending after the holiday season.
Competitiveness in the consumption of data services:
Interestingly, Airtel network subscribers generated more revenue from their consumption of data services compared to other networks. This trend is explained by the competitiveness of the packages offered by Airtel, which offers attractive and differentiated offers.
Concentration of SMS revenues:
Another noteworthy fact is that two operators, Airtel and Vodacom, together account for more than 89% of the revenue generated by SMS services. This demonstrates a significant concentration on the SMS market, with a predominance of these two players.
Conclusion :
The drop in mobile telephony revenues in the DRC in the first quarter of 2023 poses a major challenge for operators. This decrease is explained in particular by the change in the basis for reporting revenue and a reduction in ARPU. However, competitiveness in the consumption of data services and the concentration of SMS revenues offer interesting prospects for operators who will be able to take advantage of these trends. It will be crucial for the mobile telephony sector in the DRC to find suitable strategies in order to maintain its growth and meet the needs and expectations of subscribers.
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