Telecel Zimbabwe has posted an annual loss of $21.9 million as at November 2018 attributed mainly to lack of capital investment by shareholder forcing the mobile network to play underdog.
The company which used to be Zimbabwe’s fastest growing mobile network is today technically insolvent as it has more liabilities than assets running on quarterly losses.
According to the latest Potraz report, Telecel Zimbabwe is only running on 17 LTE base station, a shy figure from competition.
Telecel is lagging behind on network coverage with 656 2G sites, 408 3G sites and 17 LTE sites compared to Econet with 2501 2G, 1545 3G and 647 LTE sites AND nEToNE : 1681 2g, 824 3G and 291 LTE. There is need to improve Telecel 3G and 4G site density to arrest the migration rate.
Telecel has heavily lost subscribers to its competition who have migrated from 2G to 4G while it struggled to maintain their 3G total subscribers.
Telecel had initially started off the year with 2305 subscribers on their 2G but heavily dropped to 1852 which is a loss of 453 subscribers to the competitors whilst on 3G it started off the year with 772 subscribers which rose to 802 subscribers with a gain of 30 subscribers.
Telecel however cannot compete with Econet and NetOne is due to huge infrastructure and capacity deficiencies and service offering and therefore lower value proposition in entirely.
Funding remains the one single factor reducing the operation’s ability to implement its strategy and achieve budget targets. The anticipated $5m from the local banks however did not materialise.
Only assessed 1.5m in November 2018 from CBZ, the reduced level of funding from local banks and resultant delay in roll out of additional sites, leading directly to to a reduction in addressable market slower than planned subscriber intake and related lower revenues.