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NetOne targets 10 million subscribers

Business
State-owned telecoms firm NetOne says it is targeting to expand its capacity to 10 million subscribers following the recent signing of a $485 million deal with Chinese firm, Huawei Technologies, for the upgrading of its network under phase three of its National Mobile Broadband (NMB) project.

State-owned telecoms firm NetOne says it is targeting to expand its capacity to 10 million subscribers following the recent signing of a $485 million deal with Chinese firm, Huawei Technologies, for the upgrading of its network under phase three of its National Mobile Broadband (NMB) project.

by Obey Manayiti

netone

The project is expected to see the telecommunications company achieve 100% national coverage.

NetOne acting chief executive officer Brian Mutandiro said the partnership between NetOne and Huawei Technologies was delivering tangible benefits to communities in rural and urban areas.

“This is a significant milestone in the growth trajectory of NetOne cellular company as it gathers unstoppable momentum to reclaiming its spot as the largest mobile network operator in Zimbabwe,” he said.

The signing ceremony was recently held in Beijing and was organised by the China Council of the Promotion of International Trade as a follow up to the Forum on China-Africa Co-operation [FOCAC] held in Johannesburg, South Africa, in December last year.

The $485 million NetOne facility is part of the $60 billion availed by the Chinese government to finance eligible projects on the African continent in concessionary long-term loans.

The facility was unveiled by Chinese President Xi Jinping at FOCAC, which was attended by several African heads of state and government, among them President Robert Mugabe.

Jinping had earlier passed through Zimbabwe for a State visit before the FOCAC meeting.

Mutandiro said the summit provided NetOne with a rare opportunity to access the concessionary funds.

The NetOne mega deal was among the 40 contracts signed on the day between the Chinese and other African countries. All deals signed totalled $17 billion, with up to 500 delegates representing companies from across the continent.

The deal, which is part of the government’s Look East policy, coincides with revelations by industry regulator that NetOne is the fastest-growing network provider in Zimbabwe.

The Postal and Telecommunications Regulatory Authority of Zimbabwe, in the first quarterly report of 2016, revealed that NetOne was the fastest-growing network in the country.

“This is shown by its 5,5% increase in active subscriptions, which were 4 134 720 in the fourth quarter of 2015 and rose to 4 360 208 in the first quarter of 2016, with its competitors like Econet having an insignificant rise of 0,2% and Telecel accounting a massive decline,” the report reads.

Revenue growth was 9% ahead of last year, while other networks recorded negative growth in the same period. The National Mobile Broadband Phase One project was valued at $45 million and extended through a concessional loan from the Export Import Bank of China.

It was completed in 2013 and brought in, among other benefits, subscriber capacity expansion, base station network modernisation and third generation high speed data links.

Mutandiro said with government support, NetOne went on to initiate the National Mobile Broadband Phase Two Project in 2014 with Huawei Technologies to upgrade subscriber capacity, install 2 236 base stations with a mix of second generation, third generation, fourth generation wireless access technologies as well as network coverage expansion. Phase Two is now 90% complete and is targeted for total completion next month.

NetOne now has 816 base station sites around the country and completion of the project would see the State-owned firm increasing its base stations to 900 and a total of 2 800 “logical” base stations.