CHAPTER FIVE

Summary of Findings, Conclusions and Recommendations

5.0 Introduction
This chapter is going to summarize the whole study and look into the
conclusions drawn up by the researcher from the study. Recommendations
from the researcher are also going to be outlined and discussed.
5.1 Summary of Findings
The questionnaires response rate for senior Management was 86% of the
total population. Total of three COOs from the scheduled three were
interviewed for the study presenting a 100% interview response rate. The
response rate was high enough to warrant validity of the study
findings.The interpretation of the data was based on trends that were
coming out of the data collected. The research sought to analyze the
effectiveness of cost containment strategies that were implemented in the
Zimbabwean Mobile Telecommunications Industry from 2010 to 2015. The
findings of the research are summarized as follows;
5.1.1 To determine barriers to effective implementation of cost
containment strategies
5.1.1.1 The results of the survey revealed that,
96% responses strongly agreed and 4% agreed that the existing
organizational structures were the major barrier to effective
implementation of cost containment strategies in the Zimbabwean
Mobile Telecommunications. The results of the survey further
pointed out that the three MNOs organisational structures were
typified by stiffness and top heaviness.The three Chief Operating
Officers who were interviewed coincided with all the questionnaire
respondents

who

strongly

agreed that the uneven

business

environment hampers efforts to bring costs under better control.

5.1.1.2 The results of the survey revealed that,

66% of the responses understood it was the CEO who championed
cost containment in their MNOs. The research findings from the
COOs view pointed indicated that, even though cost management
measures were championed in-house, the ever presence of external
locus of control in the form of either the Board of Directors,
Government or majority shareholders was a major deterrent to
effective implementation of effective containment strategies.
5.1.2 To identify the benefits of implementing cost containment
strategies
5.1.2.1 The results of the survey revealed that,
75% of the responses specified that effective cost containment will
increase Return On Assets (ROA). The three CCOs were of the
opinion that effective cost containment would improve business
viability, profitability and performance
5.1.2.2

Cost

containment

strategys

cost

significance

and

strategic importance
The results of the survey revealed that, 96% of the survey
respondents felt structure streamlining and optimization would be
very cost effective and very strategic. The COOs pointed out that
productivity would improve as a result of increased efficiency and
effectiveness emanating from the substitution of human effort by
new technology.
5.1.3 To describe the extent to which the implemented cost
containment strategies have been effective
5.1.3.1 The results of the survey revealed that,
100% of the responses showed that human capital and development
operational expenditure could be reduced by employing an effective
cost containment strategy. 99% of the responses revealed that
information systems and manual processes are part of the major
cost drivers that could also be reduced by making sure a proper cost

containment initiative is employed. 97% of the responses disclosed

that MNOs could also reduce expenses related to, Site acquisition
and rentals, power and cooling, network related OPEX, GSM
equipment,

operations

and

maintenance,

site

equipment,

transmission equipment, civil works, spares and support are part of

the composite which makes up the range of cost drivers in the
telecommunications industry. The three COOs strongly pointed out
that all their cost drivers could be either be eliminated or reduced if
a holistic approach to cost containment is taken.
5.1.3.2 The results of the survey revealed that,
Only 4% of the responses indicted infrastructure sharing as the most
commonly used despite its cost effectiveness. 41% of the responses
presented structure streamlining and optimization as the most
commonly

used

cost

Telecommunications

containment

Industry

in

strategy

in

Zimbabwe.21%

the

Mobile

responses

suggested automation, 19% and 15% responses put forward

vendor/supplier engagement and outsourcing respectively as the
most popular cost containment strategy.
5.1.4 To establish the most effective criteria for implementing
cost containment
5.1.4.1 The results of the survey revealed that,
infrastructure sharing would result in a huge impact on cost driver
reduction according to 97% responses. The Chief Operations Officer
from NetOne and Telecel noted that Infrastructure sharing would
have a huge impact on their Return on Assets and competitive
advantage as they will be able to access the same equipment and
systems being used by their market leader Econet. The COO
stressed that, Econet's dominance in the mobile market was mainly
attributable to a wider network coverage as compared to NetOne
and Telecel so infrastructure sharing would erode that competitive
contrivance even though it would have a huge impact on their costs.

5.1.4.2 The results of the survey revealed that,

Infrastructure Sharing was not fully implemented despite its ability

to eliminate major cost drivers according to the following responses
94% strongly agreed and 3% agreed. The three Chief Operating
Officers highlighted the need to optimize the existing strategies as
the most effective criteria of cost containment implementation.
Further analysis pointed out the their top line deteriorated due to
costs that were associated with running and supporting the network
for example 35% of base stations were being powered by
generators any given time.
5.2 Conclusions
From the findings of this study the following conclusions were made:
5.2.1 To determine barriers to effective implementation of cost
containment strategies

External locus of control, existing organizational structure typified

by top heaviness and rutted business environment aggravated by
excessive political involvement through POTRAZ hampers efforts to
bring costs under better control.
5.2.2 To identify the benefits of implementing cost containment
strategies

The study concluded that once cost containment strategies are

implemented and adhered to by the Mobile Telecoms Industry in
Zimbabwe, it opens up room for an optimal approach in resource
allocation which will result in a number of benefits being accrued by
the respective organizations. The study concluded that effective
implementation

of

cost

containment

strategies

will

lead

to

significant reduction in costs thereby significantly increasing Return

on Assets (ROA) which is a guide of how profitable a company is

relative

to

its

organizational

total

assets.

efficiency,

This

would

effectiveness,

entail

enhancing

competitiveness

and

performance. The study also concluded that when costs are

contained there is much room created for MNOs to channel
resources to innovation, research and development hence improved
service delivery quality and New Product Development. The study
also concluded that a Mobile Network Operator that is able to
manage and contain its costs will gain a sustainable competitive
advantage than those with more costs and this will attract investors
and skilled human resources.
5.2.3 To describe the extent to which the implemented cost
containment strategies have been effective

It has been deduced by this research in the data presented in chapter 4

above that the implemented cost containment strategies in the
Zimbabwean

Mobile

Telecommunications

Industry

have

been

ineffective as shall be explained below:

despite the existent of cost containment strategies, most of the

prevailing cost drivers in the Mobile Telecommunications industry
could still be reduced or eradicated completely if a holistic approach

to cost containment was taken.

despite the huge impact of infrastructure sharing on the elimination
of cost drivers as compared to other cost containment strategies,
the cost containment strategy that was predominantly used in the
Zimbabwean Mobile Telecommunications Industry was structure

streamlining and optimization.

despite the benefits of infrastructure sharing such as significant
reduction of capital and operational expenditures, infrastructure

sharing was sparsely used.

the existing organizational structure typified by stiffness and top
heaviness, misalignment of cost containment strategies with MNO
strategy, focusing more on cost drivers that have the least impact

on the overall cost line, failure to treat cost containment as a

continuous process, the existing organizational structure, External
locus of control and partial Regulatory framework negatively
deterred the effectiveness of the implemented cost containment
strategies in the Zimbabwean Mobile Telecommunications Industry.
5.2.4 To establish the most effective criteria for implementing
cost containment strategies

The

study

concluded

that

the

most

effective

criteria

for

implementing cost containment strategies would result in a

significant cost reduction and a proliferation in Return On Assets for
MNO in Zimbabwe
5.3 Recommendations

The study recommends that Mobile Network Operators in Zimbabwe

should take cost containment as a philosophy of improving cost and
revenue; cost containment is not only cost management but also
revenue management, therefore, MNO should seek to improve
productivity, maximize profit, and improve customer satisfaction
through

effective

implementation

of

cost

containment.

This

philosophy plays a vital role in determining the future of the

operator because it promotes the idea of continually finding ways to
help organizations make the right decisions to create more
subscriber value at lower cost. MNOs in Zimbabwe should embrace
a holistic view when it comes to effective cost containment
implementation. This involves a broad focus and full optimisation of

automation and outsourcing

The study recommends that
infrastructure

sharing

as

MNOs

cost

should

containment

implement

full

strategy,

cost

associated with acquisition and rentals, power and cooling, network

related OPEX, GSM equipment, operations and maintenance, site
equipment,

transmission

equipment,

civil

works,

spares

and

support, base stations, MPLS fibre will be reduced or eradiated. Not

only the above expenses are reduced but there will be a significant

reduction in the wage bills of the respective organization as this will

be shared among all the organizations. Should the MNOs fail to
implement, POTRAZ will have to come in and make sharing
mandatory through an independent operator and levy stiff penalties

for any operator who refuses to share.

The study recommends that MNOs

should

implement

cost

benchmarks as a cost containment strategy. According to Cermak

(2011) a systematic benchmarking cost containment initiative will
quickly assist MNOs discover essential gaps in their initiatives and
take contingent plans. The study recommends that MNO should
build a green Network. Going Green strives to reduce energy
consumption and elimination of waste. This would address the
current power challenges that are facing Zimbabwe as a nation. The
study recommends that MNOs should capture value through
strategic

outsourcing.

This

include

outsourcing

network

infrastructure deployments to contractors inorder to optimise OPEX

and CAPEX. This can be achieved through splitting roles and
responsibilities with the selected intermediaries to ascertain clear

reporting and service level agreements.

The study recommends that should implement best practice vendor
relationship Managent Techniques. This will improve their bargaining
power, better negotiation and deal strategies in a bid to reduce
CAPEX.

5.4 Suggestions for Further Studies

This research was mainly focusing on the senior managements
perspective on cost containment strategies that were being used in
the mobile telecommunications industry in Zimbabwe, thus further
studies may look at it from the perspectives of other stakeholders
such as suppliers and customers. The researcher wanted to find out
if the strategies were effective enough to significantly reduce total
costs without jeopardizing service quality. It did not dwell much on
the effectiveness of the cost containment strategies to the
individual

Mobile

Network

Operator

but

the

Mobile

telecommunications Industry as a whole. This is an area of further

study where each strategy can be measured in terms of its
contribution to a specific MNO profitability, efficiency, insolvency,
liquidation and investment ratios. The researcher also suggests that
a lot need to be done on cost containment in the mobile
telecommunications industry because of Long Term Evolution where
GSM products will be more of Value Added services to OTT services
such as VoIP, whatsapp, twitter, skype, viber etc. Further researches
are needed to come up with survival strategies for the players in the
Mobile Telecommunications Industry in the advent of the Long Term
Evolution.