LEADING telecoms company, Econet Wireless Zimbabwe upgraded 70 percent base station sites in Bulawayo in the period ending 31 May as it also plans to upgrade the radio network in Bulawayo and other cities.
The firm which last week celebrated its 25th anniversary said its capital expenditure programme, which continues to be constrained by unavailability of foreign currency to pay suppliers over the next 12 months, is expected to be about US$135 million.
It launched its mobile network on July 10, 1998 and was subsequently listed on the Zimbabwe Stock Exchange on September 17 of the same year.
In a trading update for the quarter ended 31 May 2023, Econet noted that it is in the process of implementing a virtualised core network that will replace the current core network system.
The core network is the nerve centre of all the complex network activities that take place in providing the services we provide to our customers.
“This upgrade will enable the company to launch additional products and services and implement faster product changes to enhance the customer experience.
“We also plan to upgrade our radio network in Harare, Bulawayo and Manicaland by the end of the 2023 calendar year. For the period under review, the business upgraded 30 percent of our Harare and 70 percent of the Bulawayo base station sites,” it said.
Econet said as a result of the upgrades, it has seen an increase in the speed and volume of data consumed by usage of voice and data for the quarter under review grew by 30 percent and 31 percent respectively.
“This increase in volumes requires further investment into the platforms and systems that drive network capacity and capabilities. Our capital expenditure programme which continues to be constrained by lack of availability of foreign currency to pay our suppliers over the next 12 months is expected to be about US$ 135 million.
“This capital expenditure will require a supportive pricing regime given the inflation trends and currency depreciation.”
In inflation adjusted terms, Econet noted an increase of revenue for the quarter of 137 percent compared to the same period last year.
Meanwhile, the firm has approved a renounceable rights offer to raise US$30.3 million to be applied towards redemption of our maturing debentures.
A renounceable right is an offer issued by a corporation to shareholders to buy more shares of the company’s stock, usually at a discount
Source The Chronicle
