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Econet widens lead over competition
Kumbirai Mafunda, The Financial Gazette (Zimbabwe)
March 09, 2006

http://www.fingaz.co.zw/story.aspx?stid=805

ECONET Wireless, which released more lines on its pre-paid platform last week, looks set to surpass its target of 500 000 subscribers ahead of its June schedule.

Insiders say the mobile telecoms company might well have already passed its target following additional sales of its trademark Buddie brand in the past week despite worsening foreign currency constraints.

Econet corporate communications manager Dakarayi Matanga refused to confirm the new subscriber base, citing regulatory constraints as the company is in its closed period.

Prior to the issuing of new pre-paid lines, Econet boasted 412 197 customers, the highest among the country’s three mobile phone services operators, which include the privately run Telecel and the government-owned Net*One.

Because of insatiable demand for its service, the Zimbabwe Stock Exchange-listed Econet is expected to report that it had exceeded its network capacity of 500 000 customers in its full-year financial report expected soon.

The sustained growth in subscribers is expected to strengthen Econet’s position to a more than 60 percent share of Zimbabwe’s mobile telecoms market.

After failing to sign up 500 000 customers in December, Econet chairman Tawanda Nyambirai reported that the company had set sights on utilising its full capacity by June 2006.

Later, Econet founder Strive Masiyiwa said attention had shifted from the 500 000 target to one million subscribers.
Econet says the scope for further growth in Zimbabwe’s telecommunications industry is only being limited by lack of foreign currency to source crucial equipment.

Because of the seven-year-old foreign currency crunch, the country’s mobile penetration ratio stands at a paltry five percent compared to a regional average of 40 percent.

After rapid growth at the introduction of cellular phone technology in 1998, all of Zimbabwe’s three mobile networks have faced problems expanding their service since 2000 — when the country’s political and economic crisis heightened following controversial land expropriations and disputed elections.

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