Econet in aggressive 5G roll out

Econet Wireless Zimbabwe (EWZ), the country's leading mobile network operator, is continuing its aggressive rollout of 5G base stations as part of its strategy to solidify its position in the increasingly competitive technology space.

Presenting the company's trading update for the half-year period ending August 31, 2024, EWZ chairman, Dr. James Myers, highlighted the ongoing expansion of 5G infrastructure. The company has already deployed an additional 32 5G base stations in Harare, with plans for 120 more sites to be added in the near future. This move is part of the company's vision of "a digitally connected future that leaves no Zimbabwean behind."

"We are working towards enhancing the user experience by expanding our 5G network. With this densification, the maximum user throughput has increased significantly, and we are already seeing substantial growth in data market share, improved quality of service, and higher user throughput," Dr. Myers said.

The push to expand 5G services comes amid rising competition from global internet provider Starlink, whose market penetration poses a challenge to local mobile network operators. Experts argue that 5G will bring faster internet speeds, opening up new possibilities in sectors like healthcare, education, and the development of smart cities, while allowing consumers to enjoy high-speed internet on the go.

However, experts have noted some challenges associated with the rollout of 5G in Zimbabwe. The cost of building infrastructure, particularly in rural areas, and the need for consumers to upgrade to 5G-compatible devices could limit the accessibility of the technology. The higher frequency of 5G signals requires more cell towers, especially in less urbanized regions, raising the cost of deployment.

Dr. Myers acknowledged these challenges but emphasized the company's commitment to offering world-class service. "We expect this aggressive rollout of next-generation data connectivity will allow us to improve user experiences and enhance our ability to compete at a global level of quality and capacity," he said.

During the reporting period, the company reported a 56% growth in data usage and a 36% increase in voice usage compared to the same period last year, supported by its ongoing network modernization efforts. The surge in data demand translated into a 47% revenue contribution from data, up from 38% in the previous year, while voice revenue contribution decreased to 41% from 49% as more consumers shift towards data-driven services.

EWZ also declared interim dividends of 0.41 US cents and 0.26 US cents per share for the half-year period, reflecting the company's strong financial performance amid significant network investments.

As the rollout of 5G continues, EWZ is positioning itself to be a key player in Zimbabwe's digital transformation, leveraging cutting-edge technology to meet the growing demand for high-speed internet and to maintain its competitive edge in the market.