- Data usage surges 74%, mobile money active customers up 189%
- Voice revenue declines 7% amid competitive pressure
- Insurance business thrives with 14.2% and 5.5% premium growth
Harare- Econet Wireless Zimbabwe, the largest telecoms operator in the country, has made significant strides in enhancing its service provision during the first quarter ended 31 May 2024. The company has commissioned over 30 new sites across the nation, aimed at improving network performance and the quality of its services.
As a result of these efforts, the company has seen a remarkable growth in its data and voice usage, with a 74% and 46% increase, respectively.
This has consequently increased the revenue contribution from these services, with data contributing 42% and voice 38% of the mobile network operations, up from 33% and 45% in the prior year.
“With the advent of 5G, IoT and other cutting-edge technologies, the need for robust, agile and future-proof network infrastructure has become more pressing than ever,” the company said in a trading update.
However, the company has faced some challenges, with a 7 percentage point decrease in voice revenue compared to the previous year. This could be attributed to service upgrades during the period, which may have temporarily affected network quality.
Additionally, the company's main competitor, NetOne, has been offering more competitive voice packages, which has led some customers to reserve their voice calls for NetOne and use Econet's data services.
Despite these challenges, Econet has leveraged its improved service provision, particularly in the areas of reliability and speed, to maintain a competitive advantage.
While NetOne's services may be cheaper, Econet's extensive geographic reach, especially in rural areas, has given it an edge over its competitor.
The company's mobile money business has also experienced consistent growth, with a 189% increase in active customers compared to the first quarter of the prior year. This growth is attributed to an efficient distribution network and improved product offerings.
There was a 265% increase in international remittance values.
The growth in mobile money customers has also led to increased activity in the company's life insurance and health insurance businesses, with premiums growing 14.2% and 5.5%, respectively, against the prior comparative period.
Therefore, the company's resilience and ability to adapt to industry changes have positioned it for continued success in the rapidly evolving telecommunications landscape.
