Econet share price tumbles

operator will grow its subscriber base to six million by the end of this month.

After trades, Econet lost 2,5 percent or to US390c, dragging the main industrial index to a 10-day low of 159,73 points.
Also weighing down the industrial index was Tractive Power, which lost US1c to US12c. TA and Truworths also declined US14c and US10c respectively.
Gains in a few selected counters, however, failed to offset the day’s losses.

With over two-thirds of the market, Econet has said it will add one million mobile phone users on its network. It also plans to introduce a mobile payment system to facilitate small payment by its growing band of customers. The country’s largest mobile telecommunications provider said it had come up with a mobile-based payment system, applicable between Econet Wireless subscribers – eliminating need for cash, for purchases below US$20.

Econet has not spared any cost in building the mobile phone payment system, and has entered into partnership with key retailers, banks and dealers nationwide. Econet Wireless has worked on developing the new system for more than a year and this would basically turn a cellphone into a mini “wallet”.
With the critical shortage of small change, said Econet Wireless, the system will completely eliminate the need for any notes for purchases below US$20.

The system would be introduced to all the Econet customers, currently standing at five million, expected to grow exponentially to six million by the end of September which will mean that half the population will be on the Econet network.

Econet Wireless spokesman Mr Ranga Mberi said: “By the end of this month, Econet is expected to announce that it has crossed six million customers, which means that almost half the population will have an Econet line.”

While there have been several attempts to introduce similar facilities on the market the difference with this Econet system is its size and capacity considering the mobile phone operator invested significantly into the project. Many local businesses that sell fast moving consumer goods such as supermarkets and even newspaper vendors, can expect a dramatic increase in business because people will have the ability to make purchases more easily than before.