Online Reporter
Nelson Gahadza
Senior Business Reporter
State-owned telecommunications company Powertel has invested US$2,4 million in Long-Term Evolution (LTE) network technology ahead of the relaunch of its 4G mobile broadband services on September 1, to strengthen internet connectivity and expand revenue streams.
The investment replaces the company’s obsolete Code Division Multiple Access (CDMA) platform and forms part of a broader network modernisation programme aimed at expanding high-speed broadband services and reducing reliance on debt-funded capital expenditure.
In an interview, Powertel managing director Mr Willard Nyagwande said the LTE rollout had largely been financed through internally generated funds, reflecting the company’s new strategy of self-financing major infrastructure projects.
“We are going to be launching our 4G LTE network on September 1. The base stations are already in the country and the core network equipment has been delivered to our data centre.
“Zimbabweans will once again have access to the unlimited data packages they were accustomed to and this is an important milestone in supporting research, development, innovation and the country’s digital transformation agenda,” he said.
Mr Nyagwande said Powertel had already paid about US$2,2 million for the equipment, with approximately 70 percent of the investment financed through cash rather than borrowing.
He said the company expects to have 65 LTE base stations installed and operational once the rollout is complete, generating about US$300 000 in monthly revenue.
“The recapitalisation of the LTE network was achieved through self-financing and disciplined cash management. It is a departure from our previous approach where network equipment was largely acquired through debt,” he said.
The LTE rollout is part of Powertel’s wider strategy to modernise its national fibre backbone while containing financing costs amid high global and domestic interest rates.
Mr Nyagwande said the company would continue to pursue strategic partnerships under long-term Indefeasible Right of Use (IRU) agreements, allowing customers to pre-purchase network capacity for periods of up to 20 years.
The model enables Powertel to secure upfront capital for network expansion while reducing dependence on conventional borrowing.
“We want customers and strategic partners to participate in financing network upgrades by pre-purchasing capacity. That enables us to invest in infrastructure while managing borrowing costs,” he said.
Although Powertel intends to raise between US$4 million and US$5 million to complete parts of its network upgrade programme, Mr Nyagwande said the company remained committed to balancing debt with internally generated resources.
Beyond the LTE rollout, Powertel is upgrading key transmission corridors linking Zimbabwe to regional markets through fibre infrastructure and high-capacity transmission equipment.
leeroy