Mobile network operators in Zimbabwe are investing heavily in infrastructure development and expansion to improve connectivity and competitiveness in the rapidly evolving telecommunications landscape. This article explores the latest developments in the mobile network sector, focusing on Econet Wireless Zimbabwe, the country’s leading telecommunications provider.
Econet Leads the Way in Mobile Network Modernisation
Econet Wireless Zimbabwe, the nation’s largest mobile network operator, has been at the forefront of infrastructure development and expansion efforts. According to recent reports, the company has accelerated its network modernisation and strategic investment drive to enhance connectivity, boost profitability, and remain competitive in the market.
Key highlights of Econet’s initiatives include, upgrading sites with 5G high-capacity base stations. This is primarily in major cities like Harare and Bulawayo, as well as the Manicaland region. Secondly, there are plans to install additional base stations nationwide to further improve service coverage and quality. Also, an addition of more new base station sites, enhancing network capacity and reliability will go a long way.
Finally, these investments aim to improve service quality and expand coverage across the country, aligning with the vision of a digitally connected Zimbabwe.
Mobile Network: Leveraging Government Support
Additionally, Econet’s expansion efforts have received support from the Zimbabwean government. The firm was allocated test spectrum in multiple bands by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) for 5G technology services. The new technology will yield far higher speeds — up to 100 times faster than earlier broadband technologies. This extends the reach of existing base stations to underserved areas. This move has allowed Econet to add more than 50 new base station sites, improving network capacity and reliability.
Embracing Technological Advancements
In addition to traditional network upgrades, Econet is embracing cutting-edge technologies to stay ahead in the competitive telecommunications landscape. Therefore, the company has integrated artificial intelligence (AI) into its operations to boost efficiency and enhance customer experiences. 2
AI algorithms have improved customer segmentation and personalised services. These drives increased customer activity. Also, there is incorporation of AI-driven recommendation engines and predictive models into daily operations to enhance usage and revenue. Therefore, these innovations have led to a remarkable 47 percent growth in voice segment usage. 2
Addressing Infrastructure Challenges
Moreover, one of the significant challenges faced by mobile network operators in Zimbabwe is the issue of erratic power supply. Hence, to mitigate this, Econet has invested in renewable energy solutions to maintain service continuity. The deployment of green power solutions has been crucial in ensuring high uptime for most base stations 2.
Financial Performance and Future Outlook
Despite facing challenges such as local currency depreciation resulting in exchange losses, Econet reported strong financial performance. Revenue increased by 133% to $14.8 trillion, driven by a 34% rise in voice volume and a 36% increase in data volume 2. Also, mobile network modernisation and cost optimisation strategies contributed to a profitability margin exceeding 45% 2. However, exchange losses of $3.2 trillion, equivalent to 22% of revenue, impacted overall performance 2
The retirement of foreign currency-denominated debentures in October 2023 has significantly reduced Econet’s mobile network exposure to exchange rate fluctuations, positively impacting profitability 2. The company remains optimistic about boosting profitability in the current financial year and beyond.
Impact on the Telecom Landscape
Additionally, Econet’s aggressive expansion and modernisation efforts are putting pressure on other telecom operators to innovate and stay competitive. The launch of 5G services by Econet in February 2022 marked a significant milestone in Zimbabwe’s mobile network evolution. As the first mobile network operator to offer 5G in the country, starting with the capital city Harare, Econet has set a new standard for speed and connectivity.
Conclusion
The mobile network in Zimbabwe is undergoing rapid transformation. Econet Wireless Zimbabwe is at the forefront of infrastructure development and expansion. There are strategic investments in network modernisation, technological innovation and government partnerships. With this, the company is positioning itself to meet growing demand for connectivity. They are striving to stay ahead in the competitive telecom landscape. As Zimbabwe continues to embrace digital transformation, mobile network operators like Econet are playing a crucial role in bridging the digital divide. They are also fostering economic growth through improved communication infrastructure.
