Zambia hints at fifth telco operator

A fifth telco
for Zambia?

Enough room says
industry regulator.

ITWeb Africa

Saturday, Feb 22nd

Zimbabwe's TelOne broadens strategy to reverse net liabilities

Zimbabwe's TelOne broadens strategy to reverse net liabilities.

Zimbabwe fixed phone operator, TelOne – which has net liabilities of US$99 million – could struggle to raise additional funding because of its bloated loan book, according to the Zimbabwe Auditor General Mildred Chiri.

By the end of 2014, the state-owned company's net liabilities amounted to US$163.4 million. This was reduced to US$98.9 million a year later.

However, the company's loan book could impact on opportunities to raise funds says Chiri, who recommended that the company "implement sustainable revenue growth strategies that ensure profitability and capacity to service the loans" it is carrying on its books.

Management at TelOne said in response that "the company recognises revenue growth and profitability as the only certain means of reversing the negative net liability position".

To achieve this, it was broadening broadband internet connectivity and digitalising exchange centers for the fixed phone segment. Funding for these projects has been "through loan capital and own funding" avenues, the telco stated.

"The operating business segments will operate as profit centers focused primarily on revenue generation and growth and will be key in driving the business transformation strategy," according to TelOne management, headed by managing director, Chipo Mutasa.

Business units established include infrastructure and wholesale, retail division and centre for learning units. These will spearhead the company's bid to transform into a "modern fixed mobile converged network".

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