TelOne projects 20% revenue growth

FIXED telecoms operator TelOne says it is forecasting a 20% revenue growth in 2018 on the back of the full implementation of the National Broadband (NBB) project network before year-end.

BY MTHANDAZO NYONI

In 2017, TelOne achieved a 14% increase in revenue to $133,76 million on the back of an increase in broadband capacity.

“For the year 2018, the company will conclude on the implementation of the National Broadband Project through, which we are targeting to further increase our broadband capacity by 50%,” TelOne corporate communications manager Melody Harry told NewsDay in emailed responses.

“We are targeting to bring connectivity to over 100 000 households in 2018, while the growth of our distribution footprint and extend network coverage to unserved, underserviced and vandalised areas is also a priority.”

Through the NBB project, Harry said they were envisaging expanding their WiFi network by rolling out new WiFi hotspots nationwide to reach over 600 hotspots in 2018.

“These developments are expected to support the projected growth in revenue market share to 21% from the current 16%,” she said.

“Our 2018 forecast is for broadband services to contribute 40% to our revenue. We expect our asymmetric digital subscriber line revenue to increase by 38% through the additional capacity provided through the NBB. A revenue growth of 20% is forecast.”

In 2016, TelOne embarked on an NBB project in which the company is targeting to increase broadband contribution to 48% of revenue by 2020, up from 20%.

The project is being funded to the tune of $98 million under a China Eximbank facility.

The TelOne spokesperson said through the 40% discount on legacy debt promotion, the company managed to recover $9,65 million, bringing the total amount recovered from debtors in 2017 to $38,154 million.

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