Zimbabwe’s fixed landline provider, Telone has decided to shift from being dependent on voice revenue to broadband after recording an anticipated loss due to its dependence on the service last year.
TelOne’s shift is through the implementation of a broadband project entitled National Broadband Project.
“The company registered a $24.9 million loss in 2016, after a $5.8 million profit in 2015, largely due to a 25% decline in voice revenue as well as high interest costs emanating from loans inherited from the Post and Telecommunications Corporation (PTC).” said Melody Harry, the Communications and Client Experience Manager in a press release.
The company’s Voice Revenue dropped last year from $28 million in 2015 to $33 million last year, making up 29%of the total 2016 revenue of $114 million.
Implementation of the TelOne’s broadband project is under a $98 million China Export and Import Bank (China EximBank) loan facility. The company started implementing the project in the last quarter of 2016 and managed to complete 20% of its project by the end of the year.
“The full monetisation of the National Broadband Project is expected to start delivering meaningful results in 2018, when TelOne expects to break even. A $17 million profit is project in 2019” continued Harry.
The landline provider’s broadband project is expected to start delivering meaningful results in 2018, when TelOne breaks even. TelOne has the widest network coverage in Zimbabwe which is anchored on its robust backbone infrastructure, fibre, satellite and traditional copper. The company also delivers internet bandwidth (ADSL) through to the general Zimbabwean Market.
Featured Image: TechZim
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