Online Reporter
Michael Tome
Business Reporter
State-owned mobile network operator NetOne spent US$13 million last year on financing capital programmes as part of the company’s efforts to optimise network coverage, particularly for internet and data services.
The investments are part of NetOne’s commitment to allocating more resources towards data and internet services provision, as data traffic continues to contribute a larger share of the firm’s revenue compared to voice traffic.
The network expansion programme speaks to the high-speed provision of data, thus enabling business intelligence as information will flow without constraints.
According to the mobile network operator, the company invested US$1,7 million in generators and introduced smart batteries to power off-grid base stations to address power outages while minimising downtime and providing uninterrupted services to customers.
In addition to addressing power challenges, the operator also allocated substantial capital expenditures to upgrade its network infrastructure, with US$4,8 million being channelled towards core network upgrade, while US$600,000 was invested in HLR upgrade network equipment.
Other notable investments include the US$510 000 spent on firewall services, US$423 000 for server upgrades, and US$230 000 for USSD (Unstructured supplementary service data) disaster recovery, while US$17 000 was invested in acquiring network routers.
A further US$2,2 million was also spent on upgrading the billing system, ensuring that the company’s financial operations remain efficient and streamlined.
These investments demonstrate the operator’s commitment to enhancing its network infrastructure and supporting the growing demand for data services.
As subscribers increasingly adopt cloud-based communication tools and video conferencing, the company’s investments position it to meet evolving customer needs and stay ahead in a rapidly changing market.
Addressing stakeholders at the 2024 annual general meeting, NetOne chief executive officer Engineer Raphael Mushanawani said the company continued to modernise its network systems, ensuring seamless data provisioning to the clientele.
“NetOne continued modernisation of the whole network systems to make sure that provisioning data is smooth. We managed to build 259 new LTE sites and upgraded 500 to the latest technology, and also continued the modernisation of core network systems.
“In terms of operational efficiencies, we saw the digitalisation and automation of internal processes,” said Eng Mushanawani.
Organisations and entities’ adaptation to technological advancement and digital transformation to suit the ever-changing business landscape is expected to sustain the demand for ICT solutions in the year.
In a great way, digital transformation is projected to create a positive growth environment for the local telecommunications sector as it drives demand for innovative solutions, which are critical for new-age business opportunities.
The foreseen growth is expected to create opportunities for indigenous telecoms companies in the short – medium term, through the provision of innovative products and services that include cloud computing, artificial intelligence, big data analytics, and Internet of Things (IoT) solutions.
This comes as the company saw significant growth in both voice traffic, which reached 1,5 billion minutes, and data traffic, ending the year at 71 terabytes, a substantial increase from the budgeted 11,3 terabytes, showcasing the company’s strong performance in driving usage and adoption of its services, particularly in the data segment.
“Subscribers are increasingly using cloud-based communication tools and video conferencing, reducing reliance on traditional mobile voice calls, hence the growth in data revenue. This is in line with global trends,” said Mrs Nyasha Nyambuya, NetOne’s chief finance officer.
Resultantly, the company’s revenue saw a significant 62 percent year-on-year growth to ZiG$3,7 billion in 2024 from ZiG$2,3 billion in 2023, attributable to a 110 percent surge in data revenue and a 30 percent increase in voice revenue.
However, operating costs rose by 73 per cent, outpacing revenue growth.
Notably, the company, however, incurred total foreign exchange losses of ZiG11,4 billion due to exchange rate fluctuations during the year.
