Econet records growth in data services
The country’s largest mobile network service provider – Econet – has witnessed significant growth in data services supported by its device strategy, an initiative also meant to increase smartpnone penetration and bridge the digital divide.
Econet registered active data customer’s growth of 8 percent for the past financial year compared to prior year as the need for data connectivity continued to grow.
This comes as the digitalisation has become the new norm, with businesses world over embracing it, accelerated by Covid -19 pandemic.
According to the telecoms giant, in 2021, active 30 days customers were averaging 4,3 million and in 2022 customers averaged 4,5 million in December, being the peak.
Econet introduced the Smart Kambudzi device, which saw smartphone penetration going up by 2,6 percent to 63 percent, which also helped increase the data active customers per day to 2,56 million (December peak).
Additionally, the device strategy also increased the 4G devices on the Econet network by 46 percent to close the year at 1,2 million 4G capable devices.
“Our Digital Lifestyle Network positioning blended well with this environment and in 2021 we managed to increase data usage by 48 percent driven by data packages such as Private Wi-Fi Bundles, E-Learning Bundles, weekend hourly bundles and the affordable smartphones, which addressed the needs of the Zimbabwean customers,” said Econet.
The group has, however, been unable to further invest into infrastructure due to limited foreign currency as the country continues battling foreign currency among other economic challenges.
“Investment in infrastructure over the years has been on a downward trend as a result of acute foreign currency shortages in the country. The business has been investing an average of 5 percent of revenue compared to other telecommunication peers in the region whose average annual capital investment is over 15 percent of revenue.
“This continues to have an adverse effect on the customer experience,” said chairman Dr James Myers.
The group has, however, made strides towards improving network coverage across the country, with 65 additional sites installed during the year to February 2022.
These ranged from 2G and 3G network improvements in rural areas to increase connectivity to rural populations, and 4G and the recently launched 5G networks in and around urban centres to improve internet connectivity as part of its transformation into a digital service provider.
The increase in base stations and the introduction of 5G network are expected to increase speed and quality of service as well as help the group consolidate its market position.-ebusinessweekly
