What Would Happen If Telecel Joins Forces With Netone

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Telecel Zimbabwe was founded in 1996 as a subsidiary of Telecel International, a company owned by Rwandan-born billionaire Miko Rwayitare. The company was 60% owned by Telecel International and 40% owned by the Empowerment Corporation, a consortium of local empowerment groups. The group was founded by James Makamba in 1996 as well with its key people Patrick Zhuwao and Jane Mutasa.

The Empowerment Corporation was created under the banner of the Zimbabwe Wealth Creation Council in 1996. It was made up of a consortium small scale indigenous organisations which included the War Veterans Association, the National Miners Association, the Zimbabwe Farmers Union and the Indigenous Business Women Organisation.

Telecel Zimbabwe has been struggling in its Telecoms sectors for the past 7 years. Zimbabwe’s third-biggest Mobile Network Operator has been facing a lot of problems from Management, network infrastructure, and subscriber base. There hasn’t been stability in the MNO ever since it was launched.

Source: Potraz

So want would be the best thing for the MNO to do and also to save people from their ever crying out loud over Econet’s monopoly?

Considering that both MNO (Netone and Telecel) are state-owned we believe that if the two forces join it will save Telecel’s ship from sinking. Let us look at some facts here, Telecel Zimbabwe offers stable, cheap and reliable broadband services, their network offers one of the best speeds. Netone also is people’s choice network on their services from the Internet, customer care, affordable prices, and best service delivery.

The chart below shows active mobile subscribers of all Mobile Network Operators in Zim:

Source: Potraz

Active Mobile Money Subscribers

Source: Potraz

Base Station Market Share

Source: Potraz

The charts above clearly show how Netone and Telecel are struggling to get a big share of the cake, although the country is facing economic challenges where MNOs are failing to price their products well and to improve their infrastructure.

Telecel has been lagging behind on building new LTE base stations are even more stations while the leaders of the industry keep updating their Base Stations to suit the modern technology needs. In all categories in the sector, Telecel is the biggest loser and its market share keeps shrinking. When Telecel started they had the best coverage in Urban Areas only and their services were poor once you drive out of the major cities and towns whereas Netone once had the widest coverage in Zimbabwe.

Netone’s vision of achieving ‘World-class status’ in the next 20 month in the country can also quickly be achieved if the MNO joins forces with Telecel.

How can this be achieved?

They say numbers don’t lie, once Telecel and Netone join forces it will increase their Active Subscribers and this is where the whole game starts. Considering the fact that most active mobile internet users are moving over to Netone because they believe that it offers the best and good quality plus an awesome service delivery. On the other side of the coin, Telecel is offering one of the best promotions in the country but they are lacking marketing strategy of which Netone so far has proved to be the best Marketer in the industry.

Under the leadership of Lazarus Muchenje we believe that he can make these MNO outshine Ecocash.

Did you know : Netone’s OneMoney offers the flexibility of sending money from bank to any OneMoney wallet not to what Ecocash does, sending money to your wallet then send the money to the intended Ecocash Number.

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