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Operators fight over Zambia's data market

By Michael Malakata, ITWeb’s Zambian correspondent.
Zambia, 05 Aug 2011

As operators battle for the control of Zambia's lucrative data market, Zambia Telecommunications Company (Zamtel) has announced it is rolling out a 3G network, a move that is expected to further heighten the competition.

Zamtel wants to have a share of the country's data market by increasing Internet penetration to “acceptable standards”, according to Zamtel chief commercial officer Amon Jere.

Zambia's current Internet penetration stands at 10%, which Zamtel describes as low.

SA's MTN and India's Bharti Airtel are already operating 3G networks and have been battling for customers in the last two years. Already, Airtel has announced that it will build more than 200 new transmission towers by the end of this year in a bid to boost its market share.

Airtel already has 800 towers across the country. Through the new towers, the company plans to increase its market share from about 70% to 80%.

MTN, on the other hand, plans to invest an additional $40 million this year alone in network upgrades and expansion to raise market share to 37%.

Jere says the 3G technology will first be switched on along the line of rail including Lusaka, Copperbelt, North Western province and Southern Province in the first phase while the second phase will connect all provincial centres.

He adds that Zamtel customers will now be able to access mobile broadband on their mobile phones and laptops and enjoy multimedia services such as Skype calls and video chats using msn.

The technology will further support mobile television, video-on-demand, video conferencing, tele-medicine and location-based services.

Zamtel is owned by LAP Green Networks of Libya and despite the current UN sanctions on the Libyan government officials and assets freeze, Jere says Zamtel wants to become a market leader in the next five years with 30% market share in the provision of mobile phones and Internet services.

The Zambian government, which owns 25% stake in the company, says it only has money enough to run the company for one year up to 2012.

Jere, however, notes that the prime factor driving Zamtel forward is its innovative brand that has comes with improved customer service resulting in the provision of affordable products and services. Zamtel says it has invested $37 million in 3G network.

“We are assuring our customers of affordable 3G-enabled terminals such as mobile phones and dongles in all centre with 3G base stations,” says Jere.

Zamtel is working with its partners including Samsung, ZTE and Wawi to bring affordable smartphones in the country in order to allow everyone to own a smartphone, according to Jere.

Jere, early this year, said Zamtel made investment commitments that are being met citing the new billing system that will enable the company to develop creative products, investment in the subscriber management system and the new call centre.

Other innovations soon to be unveiled by the company include a number management system that will enable customers create their own phone numbers and the Internet service providers (ISPs) call network, that will enable Zamtel create different Internet packages for customers depending on their pockets.

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