Communications networks in Zimbabwe are crumbling. A chronic lack of investment has plunged the country\u2019s fixed-line network, operated by state owned TelOne, into serious disrepair.<\/p>\n
It\u2019s often difficult for people outside the country to get a connection to Zimbabwe.<\/p>\n
The country\u2019s three mobile operators \u2014 Econet Wireless (1m customers), state-owned NetOne (400000) and Telecel (250000) \u2014 are struggling to keep their networks operational amid a dire shortage of foreign currency.<\/p>\n
A former executive at one of the companies, who asked not to be named, says lack of access to foreign currency means operators can\u2019t import spares and equipment to expand capacity to meet pent-up demand. Then there\u2019s the loss of skilled staff, especially engineers and IT experts, to SA and other markets in Africa; highly regulated tariffs which are below cost; and constant power failures.<\/p>\n
\u201cThe state power authority is also battling to maintain electricity supplies . and expand power generation and supply infrastructure ,\u201d says the former executive. \u201cAs a result, operators, in particular Econet, have spent millions on diesel generators to power their base stations, and this usually causes massive congestion as base stations trip and people can\u2019t make calls.\u201d<\/p>\n
At less than 15% of the addressable market, mobile penetration is very low. The telecom industry\u2019s fortunes are only likely to improve once the economic meltdown subsides.<\/p>\n
There is some hope, though. Government has liberalised exchange controls, allowing operators to charge for services in US dollars. \u201cThey hope to generate sufficient reserves to import network equipment and pay foreign contractors to expand their networks.\u201d<\/p>\n
The former executive also believes there are opportunities for foreign telecom companies to invest in Zimbabwe. \u201cThe most likely route would be for a company like MTN to take over or buy into an existing operator rather than to start a greenfield operation because of the costs involved.\u201d<\/p>\n