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Looming
boom heals rift
Allen Chifokoyo,
The Financial Gazette
January
13, 2005
http://www.fingaz.co.zw/fingaz/2005/January/January13/7508.shtml
EXPECTED growth
in the country’s telecommunications industry in the next few years,
and anticipated high demand for payphones, forced Celsys to resolve
its long-standing dispute with Econet Wireless Zimbabwe.
Celsy’s biggest
division, Celsys C-Phone, relies on supply of cellphone lines from
the networks, which it sells to public phone operators.
Celsys
this month resolved its differences with Econet, the country’s biggest
mobile phone network, as it seeks synergies that will enable it
to grow in the near future.
"The mobile
telecommunications industry in Zimbabwe looks set to expand over
the next three years. This being the case, Celsys, which has fostered
good relations with the networks, will be well placed to take a
large share of these lines, driving their payphone and cellular
phone business forward," said Lesley-Ann Freeman, the company’s
marketing director.
Celsys and Econet
last week issued a joint statement saying they had "satisfactorily"
resolved their long-standing legal dispute, which had been submitted
for arbitration.
The dispute
arose after differences over a bulk supply agreement entered three
years ago.
Celsys said the payphone business had registered a steady increase
and it now boasted a full order book for its Adondo phones.
The phones have
proved to be a cash cow for the company and airtime revenues have
exceeded the company’s expectations.
"Celsys
continues to look at different ways of increasing airtime usage.
This increased capacity will enable the firm to further develop
its payphone business by 80 percent and its cellphone sales by 120
percent during the year," said Freeman.
In a move showing
the company’s increasing dependence on the payphone business unit,
Celsys has invested in a new specialised airtime loading system.
The technology
group is also eyeing some companies to enhance its portfolio and
these, according to Freeman, will be acquired through shareholder
funds.
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