MOBILE phones services company Econet Wireless has concluded a major expansion deal with Swedish telecoms firm Ericsson as it moves to consolidate its dominance of the Zimbabwe market.
Econet Chief executive Douglas Mbowenisaid the agreement has several benefits for the operator and the end user.
“Ericsson has been doing business in Africa as far back as 1897 and as a result, understands the African market and has a proven track record for technology leadership in this sector.
“Additionally, the company’s ability to provide diverse connectivity services to Econet, together with their understanding of our business requirements, as an operator in this specific market, has allowed us to really drive solutions and innovations that suit our consumer needs,” he said.
Under the terms of the agreement, Ericsson will be responsible for the expansion of the Core and Access (2G and 3G) networks as well as key business support system delivery. Ericsson will expand Econet’s existing network, provide transport and transmission technologies and services such as system integration and business consultancy.
Ericsson’s head for sub-Saharan Africa, Lars Lindén says the expansion deal will not only allow both companies to strengthen their competiveness, but enable further support for high-growth markets, such as Zimbabwe, where strong subscriber growth is expected to increase over the next couple of years.
“Business opportunities exist in a vast number of sectors in Zimbabwe, including information technology and this type of recapitalisation and expansion is crucial to growth and development,” he said.
Linden added: “Any market innovator must expand its offering and see the many business opportunities that exist for efficient technologies, especially in a country wanting to stabilise and grow its economy.”
Econet Wireless is the largest telecommunications company in Zimbabwe and holds more than 70 percent of the country’s mobile phone market.
At last count the company said it had about 4 million subscribers and the deal with Ericsson facilitate network capacity expansion to about 5 million by August this year.
The agreement will also enable Econet to provide most of Harare has full 3G coverage by the end of June.
The mobile phone sector is one of the main growth sectors in Zimbabwe’s economy with the three existing operators engaged in stiff competition for subscribers.
Econet’s rivals - the privately owned, Telecel Zimbabwe and the state-run NetOne – have also invested significant sums in network capacity expansion.
NewZimbabwe.com
09 June 2010
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