Efficiency, Key Result Area for Netone’s Operational Strategy
Netone has proved to be the most efficient mobile operator having successfully achieved low-cost operation against a growing market share position in the Zimbabwean telecommunications industry. Only Netone recorded a significant increase in voice traffic market share in the 1st quarter of 2018 by 8.1% while competitors Econet and Telecel fell by 4.5% and 2.9% respectively as compared to the last quarter of 2017.
In terms of mobile revenue market share growth, Netone boosts of the highest growth in mobile revenue of 0.5% as compared to Econet’s 0.1% while Telecel recorded a 0.6% loss. The growth in mobile revenue is attributed to Netone’s successful introduction and adoption of the One fusion package to the market.
The company has successfully incurred the lowest cost in the telephony infrastructure base stations expansion that has yielded the highest growth in various aspects of the market share. Netone has been able to achieve the highest growth of all mobile operators using the least of infrastructural resources of LTE base stations of 287, which made internet from the MNO (Mobile Network Operator) stable and fast.
The total number of active mobile money subscriptions as of 31 March 2018 was 5,500,625 up from 4,706 778 recorded in the last quarter of 2017. Netone experienced the biggest leap in active mobile money subscriptions of 49% as compared to the last quarter of 2017.
This means that in terms of market share of active mobile money subscriptions only Netone gained 0.5% while Econet lost 0.4% and Telecel 0.1% in the 1st quarter of 2018. The current cash crises have spurred mobile money bill and merchant payments to be adopted as an effective alternative mode of payment.
Netone’s total active mobile agents outlets have recorded a significant increase by the highest margin of all the mobile operators at 18% while Econet’s total active agents increased only by 8% and Telecel lost about 17% of its mobile agents in both rural and urban areas.
In practice, under the prevailing cash crisis situation Netone has been able to effectively raise cash float for its mobile agents to effect over the counter transactions more than any of its competitors.
In the 1st quarter of 2018 airtime bill and merchant payments increased by 6% to record $772,307,418 from $725,510,160 recorded the last quarter of 2017. Mobile money airtime, bill and merchant has experienced consistent growth since January 2017 with Netone money services bringing a new taste of affordable and lasting transacting experience on the mobile money platform in the telecommunications market.