NetOne adds 36 000 new subscribers in 4 days

STATE-OWNED mobile phone network, NetOne, added over 36 000 new subscribers inside four days after Econet Wireless Zimbabwe increased its data tariffs, forcing the industry regulator to intervene.

The country's second largest mobile telecommunications company by subscribers benefitted after Econet increased its tariffs in response to a directive by regulator, the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ).

Econet, the country's largest mobile network operator by subscribers, on January 11 unveiled a set of new tariffs for data, which include what are known as data bundles for WhatsApp and Facebook.

The new data tariffs were too high, in some cases they had increased by as much at 500 percent, triggering a furore in the market in which the majority of consumers are living in poverty and experiencing serious decline in disposable incomes due to high unemployment rates in the country.

The situation had been made even more worrisome by the fact that most school children are now heavily dependant on data given that government has introduced e-learning in schools.

The new tariffs were reversed by Information and Communication Technology Minister, Supa Mandiwanzira, under whose portfolio POTRAZ falls.

NetOne acting chief executive officer, Brian Mutandiro, said they had experienced an avalanche of subscribers for their sim cards after the tariff debacle.

While initial estimates were that 18 000 new subscribers had been added to their network after a lot of people switched to NetOne in response to the new tariffs, Mutandiro revealed this week that the figure was actually double that.

"It is an understatement to say we had only 18 000 people as we actually doubled that figure," said Mutandiro.

"The latest 2016 third quarter report (by POTRAZ) shows we have a subscriber base of almost six million and judging by the level of migration to our network this year, we are obviously going to increase our market share to unprecedented levels," he said.

Zimbabwe's mobile penetration rate declined from 97 percent to 94,3 percent between July and August 2016 as the number of active mobile phone subscriptions dropped slightly during the period. This was revealed by POTRAZ in its report for the third quarter.

NetOne recently reintroduced data packages as part of its efforts to offer affordable products.

In a statement, the company said it had captured many new subscribers in the aftermath of the tariff fiasco.

"A close analysis of NetOne's data bundles and social media bundles shows that NetOne now offers the most affordable data offer when compared to the other players," read the statement.

NetOne said it had come up with attractive packages that resonate with the expectations of Zimbabweans in the face of the prevailing liquidity challenges.

Although the telecommunications regulator proceeded to ban NetOne's latest promotion, the mobile telecommunications company this week said only the WhatsApp and Facebook data offerings had been affected. The company was only asked to put data caps on these products rather than unlimited access.

Mutandiro said the company's OneFusion package was in line with current global technological trends on fair usage policy.

"The policy is meant to enhance the experience and deliver an unparalleled experience for NetOne clients. The fair usage policy is informed by customer usage patterns. However, you will realise that even after making use of this fair usage policy we remain the most competitive in the market," he said.

He said NetOne was set for greater heights and would provide a competitive and quality service to current and prospective subscribers.

"We have a lot in store this year and we will bring life changing, customer-centric initiatives that will cumulatively enable socio economic development," Mutandiro said.