- 32 new 5G base stations were deployed in Harare
- Data consumption surged by 56%, and voice traffic increased by 36% during the review period
- The active subscriber base grew to over 10.6 million, capturing a market share of 71.59%
Harare-Econet Wireless Zimbabwe, the pre-eminent telecommunications operator in the region, has strategically deployed an additional 32 5G base stations in Harare over the six-month period concluded on August 31, 2024.
The organization has outlined plans to expand its footprint further with an additional 120 sites, aimed at bolstering service quality in response to heightened demand for its offerings.
During this half-year timeframe, data consumption surged by 56%, complemented by a 36% increase in voice traffic.
However, despite these advancements, network challenges persist for Econet users, affecting both voice and data services.
This situation, though improving, remains evident despite substantial capital expenditures aimed at network enhancement, particularly data services.
The group reported revenue of ZiG5.02 billion for the period under review, a rise from ZiG4.71 billion in the same period last year wile profit after tax reached ZWG 347 million, up from ZWG 272 million in the previous year.
Historically, Econet's capital expenditure for 2024 reached ZWL1.9 trillion (approximately US$127 million), representing 363% increase compared to ZWL0.4 trillion in 2023. This capital allocation was predominantly directed towards a comprehensive network modernization initiative.
A significant portion of this investment focused on upgrading existing infrastructure, resulting in the modernization of over 1,012 sites to integrate high-capacity 4G base stations. This upgrade specifically targeted key urban centers, including Harare, Bulawayo, and the entire Manicaland region.
In addition to infrastructure upgrades, the program also encompassed the installation of new base stations, with new 5G base stations introduced elevating the total to 27.
Thus, by the halfway point of 2025, Econet have added a total of 32, bringing the overall count to 59.
Nevertheless, consumers continue to experience network challenges concerning data usage and call quality.
This scenario reflects the principles of supply and demand: while Econet is actively revamping its service offerings, the pace of supply enhancements lags behind the burgeoning demand for its products.
With over 10 million active subscribers utilizing either data services, voice calls, or both, Econet's growth trajectory is notable.
In the second quarter of 2024 alone, the company attracted over 184,000 new customers, elevating its market share to 71.59%, as reported by Potraz. This growth increased its active subscriber base to 10,620,462, up from 10,436,233 in the preceding quarter.
These statistics indicate that over 10 million users rely on Econet for data and connectivity services, contrasting sharply with its competitors, NetOne and Telecel.
In Q2 2024, NetOne reported 3,877,062 active subscribers, a decrease from 4,017,167 in the first quarter.
Telecel, despite being the third-largest operator under Mutapa, struggles with service reliability even in urban settings, resulting in customer migration towards Econet.
This shift has contributed to a significant increase in Econet's market share to 71.59%, compared to NetOne's 26.14%.
Despite a commendable 17.68% growth in its customer base, rising from 286,213 to 336,821 subscribers in the second quarter, Telecel only accounts for 2.27% of the market.
This dynamic illustrates that the competitive landscape for connectivity is firmly in the hands of Econet, where ongoing service renovations are critical to meeting demand.
Therefore, Econet users continue to face network challenges despite the company's significant investments in infrastructure and service upgrades due to several interconnected factors.
The rapid growth in demand for data and voice services 56% and 36%, respectively indicates that customer usage is outpacing the network's capacity to deliver consistent quality.
As more users engage in data-heavy activities, the existing infrastructure may struggle to keep up with the increased load, leading to congestion and degraded service quality.
While Econet has modernized many of its sites, some legacy infrastructure may still be operational. This outdated technology can hinder overall network performance and integration with newer systems, further impacting user experience.
Also, the geographical distribution of new base stations is not adequately covering all areas, particularly in rural or less densely populated regions, resulting in connectivity issues for users in those locations.
Consumers also needs to understand that significant capital expenditures do not yield immediate results; there is often a time lag between investment, infrastructure implementation, and noticeable improvements in user experience.
Econet should continue scaling up infrastructure investment to enhance network capacity to alleviate congestion. This could involve expanding the rollout of high-capacity base stations and optimizing existing sites to better handle increased traffic and prioritizing the modernization of legacy systems that will help ensure that all parts of the network are capable of supporting newer technologies effectively.
Econet should also focus on improving geographical coverage by strategically locating new base stations in underserved areas, ensuring that rural users benefit from enhanced connectivity. Investing in network management systems could help identify and address congestion points in real time, allowing for more responsive service adjustments.
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