NetOne dumps Zellco

contract with Zellco Cellular over non-remittance of some fees collected by the agent.
Zellco was NetOne’s agent contracted to sell some of its services for a fee. Although the amount owed could not be ascertained yesterday, sources familiar with the storm said Zellco was in “huge arrears”.
The cancellation of the contract could push Zellco out of business since it was largely sustained by the NetOne contract.
Zellco chairman Mr Biggie Chitima confirmed the cancellation of the contract but refused to shed more light.
“I cannot comment on that matter because it is now being handled by our lawyers,” said Mr Chitima. He also professed ignorance of the circumstances leading to the contract’s cancellation.
A senior manager at Zellco said the company only learnt of the cancellation through messages sent to NetOne subscribers.
“There were no procedures taken to inform us of its intention to terminate our contract,” said the senior manager.
“We were all surprised. To be honest with you, we only got to know about this through text messages (SMS).”
The SMS read: “From 06/04/11, NetOne has cancelled Zellco’s service contract. Customers will now pay their bills directly to NetOne. There will be no loss of service.”
Zellco and Firstel Cellular were the two remaining NetOne agents. In 2001, the mobile company terminated its contract with Cosmos Cellular after the latter failed to pay Z$200 million in service fees.
An official with NetOne confirmed cancellation of the contract but declined to give details.
Both Zellco and NetOne are battling to recover millions of dollars in unpaid phone bills from their post-paid customers.
It is understood that NetOne is owed over US$30 million by more than 10 000 of its post-paid customers, most of them serviced by Zellco Cellular.
The mobile service provider has over one million subscribers, with pre-paid customers making up the bulk.