Econet loses 400 000 subscribers

Over 400 000 subscribers deserted Econet Wireless Zimbabwe between July and September last year, latest Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) statistics have indicated. Econet was the only one of a three-member league of mobile telecoms providers to report falling numbers in active subscribers during the period, according to the POTRAZ report.

It said the slide in Econet's active subscribers dragged the combined sector total southwards. Econet controls close to 50 percent market share of the 20 million subscribers on the three mobile phone networks, which include its State controlled rivals, NetOne and Telecel Zimbabwe.

Meanwhile, Econet Wireless Zimbabwe has been asked to defer its extra-ordinary general meeting set for tomorrow until it has addressed technical issues relating to its proposed rights issue.

Econet intends to raise $130 million through a rights offer and linked debentures sale in order to facilitate the servicing of its foreign debt. Under the proposal, shareholders will follow their rights by paying the subscription price of the shares and linked debentures directly outside Zimbabwe into the company's debt account with Afreximbank.

Econet Global Limited, who were the guarantors of the foreign debt which amounts to $128,19 million, will underwrite the transaction. In a statement, the Zimbabwe Stock Exchange chairman Caroline Sandura, said the bourse had advised Econet to defer the EGM until certain technical issues relating to the transaction had been clarified to the satisfaction of the ZSE board.