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overnment-owned mobile telecommunications company NetOne is on a voyage of transformation. It claimed around 16 percent of Zimbabwes 9.8 million mobile users at the end of March 2012, according to TeleGeographys GlobalComms Database, and has the largest network coverage nationally, but has suffered from poor infrastructure investment and maintenance. It has had a hard time. But it is determined to improve. And it has started with its broadband services says NetOne managing director Reward Kangai. Its services are currently available in all Matabeleland provinces, Midlands, Masvingo and parts of Harare. Efforts are underway to expand coverage and improve 3G services using a $45 million
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loan secured from the China Export and Import bank. The 3G expansion is countrywide, says Kangai. We are trying to get as many customers as possible to connect to the web through both our 3G and GPRS/EDGE networks. Thats the current effort. We started in the west and are moving east, connecting people as we go. A substantial portion has already been connected to the 3G networks. It is part of our exercise to provide internet access across the whole country and to support the programme we have leased very high capacity bandwidth from the six network providers accessing the EASSy cable system and we are also hoping to hook up to the WACS cable. He says improved Internet access is vital to Zimbabwes future. It is fundamental for the economy, for social mobility, for growth, Kangai explains. Thats why were making sure this is countrywide and not just in populated areas or tourist hotspots. This is about the rural communities too. NetOne is certainly heading down the right path. But this isnt the only improvement. Work too has centred on improving the customer experience and an investment has been made into a new billing system. We do have a new billing system we are rolling out and it comes from a Finish IT firm called Tecnotree. Why have we made the investment? To improve billing. To improve the customer experience. To ultimately win back market share that we have lost in recent years. We have to have a fair way of charging our customers. Were not just providing voice and SMS services but Internet content and we have to change with the times and reflect that fact. Those services require a different billing architecture, a solid architecture and so we purchased a convergent customer care and billing system for our pre-paid and post-paid operations. The new system is expected to be installed by year-end. It is a transparent
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and appropriate billing system and certainly an upgrade on existing systems that are no longer adequate in terms of our expansion. The Tecnotree solution has been tailored to NetOnes unique requirements. As we look to cover more of the country and offer services to more people, we have to improve and this is an important step forward in that respect, Kangai says. We have no doubt that itll help improve our competitive advantage as we reach out to every Zimbabwean and enrich their lives. In a bid to improve further still Kangai says the firm is looking for investment from abroad. We are on the hunt for a strategic partner to help turn around our fortunes. We have had quite a lot of interest from various companies who
want to partner with us and have worked to resolve several issues to make us a more attractive proposition. That said I think there is also a realisation of the strategic importance of NetOne and Zimbabwe will certainly benefit. NetOne has been an actively engaging with financial institutions to come up with a debt clearance strategy. According to Kangai, the company has defaulted on some loans since 2002. It was inherited from first unbundling of the then Posts and Telecommunications Company, which NetOne was part of, and then to aid the company in its development soon after inception. He says NetOne is in talks with the foreign lenders to find ways to retire or at least reduce the debt.
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We are on the hunt for a strategic partner to help turn around our fortunes. We have had quite a lot of interest from various companies who want to partner with us and have worked to resolve several issues to make us a more attractive proposition
We are negotiating. And not only that - we are trying in all we do to maximise all possible economies of scale to strengthen our business. Remember the telecoms industry is capital intensive and we need a strategic partner in order to get the funding to gain the necessary economies of scale. From a user perspective, the kind of partnership that we are contemplating will give them a much broader reach in terms of services, not just within Zimbabwe but across the African continent and beyond. Those services can only be obtained from the kind of strategic partnership we are looking for. NetOne has an estimated 1.6 million subscribers and is Zimbabwes third largest mobile operator behind Econet Wireless and Telecel. NetOne, formed in 1996, is the countrys first mobile operator. END To learn more visit www.netone.co.zw.
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South Africa Magazine, Suite 9 and 10, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF TNT Multimedia Limited, Unit 209, 16 Brune Place, London E1 7NJ ENQuIRIEs Telephone: +44 (0) 1603 343367 Fax: +44 (0)1603 343502 andy.williams@tntmultimedia.com suBscRIPTIONs Call: +44 (0)1603 343502 andy.williams@tntmultimedia.com
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