NetOne targets 3million subscribers

Published: 24 June 2014

State-owned mobile services provider, NetOne, is targeting to increase its subscriber base to three million people by the end of this year, an official said on Monday.

NetOne has been lagging behind its competitors, Econet and Telecel, in terms of attracting subscribers and upgrading network infrastructure due to financial constraints.

Chief executive officer Mr Reward Kangai told the Parliamentary Portfolio Committee on Information Communication Technology that the firm currently has between 2,7 and 2,8 million subscribers.

"We are targeting three million subscribers by December 2014. I think we are on course to meet that target," he said.

Mr Kangai said products such as One Wallet, which allows customers to access crucial services including purchasing electricity units as well as provision of various data and voice services promotions, would drive subscriber growth.

"We have already put on order an additional one million Sim Cards so that we do not have any shortages."

He said due to the envisaged growth, the company was also targeting to increase its network capacity to cater for six million subscribers by the end of the year.

Mr Kangai, however, said the firm was facing various challenges in its efforts to increase network coverage.

He said these included unpaid debts running into millions of dollars and inadequate funding to finance expansion projects.

Mr Kangai said the company was also facing challenges with procurement processes under the State Procurement Board (SPB).

He said - for example - at inception of NetOne the then Tender Board went against recommendations and awarded the tender for the supply of base station equipment to Siemens and Motorola.

"When we first went to tender for the establishment of NetOne, we recommended Eriksson but they (the Tender Board) took Siemens and Motorola, companies which are no longer in the mobile telecommunications business.

"We are now having to replace all the equipment which was supplied then because it is no longer adequate."

He appealed to Government, to give NetOne autonomy in terms of procuring equipment and services as it was not an institution that was funded through taxpayers' money.

"Procurement is the most unfortunate area, it is the big millstone around our neck. I do not quite understand why we have to go through the SPB, they have really been a big hindrance.

"We should simply be de-listed from the procurement Act because there was no basis for us to be included in the first place," he said.

- NewZiana.