Zimbabwe: NetOne Signs $ 71 Million Financing Agreement With Huawei to Improve Network

Zimbabwe: NetOne Signs $ 71 Million Financing Agreement With Huawei to Improve Network

Mobile operator NetOne, a subsidiary of the public telecommunications group TelOne, unveiled the signing of a financing agreement worth US $ 71 million with Huawei Technologies International .

The money will be used to carry out the third phase of the expansion program and modernize the network of the telecom operator. This new phase will focus more on rural areas to bring mobile phone services to more people, including voice services, Internet connectivity and data products, financial services.

The US $ 71 million that NetOne is investing in is part of the $ 485 million overall allocation to the network extension and modernization program launched in 2010 by the mobile operator.

Between 2010 and 2013, the first phase of NetOne’s network expansion program involved the installation of a mobile network in Bulawayo for $ 45 million.

The second phase, valued at US $ 218 million, enabled the telecom company to increase the number of its telecom stations in the country from nearly 400 units to 2,300. The third phase, which starts this year , plank on reaching the number of 3,000 telecom stations deployed across the nation.

Redeemable over a period of 20 years, with an interest rate of 2% per annum, the global sum of US $ 485 million granted to NetOne, should contribute to the achievement by the company of the position of leading operator of by 2020.

NetOne wants to enrich its subscriber base with 5 million additional customers. In 3 rd  quarter 2017, the Company had 4,868,897 customers and was second in the market. Econet was still leader with 7,137,171 subscribers, in a telecom market then estimated at 13,799,648 consumers. Telecel held the 3 rd  place with 1,793,580 subscribers.

Source: Agence Ecofin