As competition for the lucrative Zimbabwe cellular market hots up, Siemens Mobile Networks (SA) has extended its contract with state-owned NetOne, the first and only existing cellular network, to triple its capacity from 20 000 to 60 000 subscribers.
The latest contract, representing an investment of US$ 22-million, comprises the third phase of the Siemens network which was installed in early 1997. Apart from swelling subscriber numbers, the capacity expansion will relieve congestion problems, especially in Harare.
The total cellular market in Zimbabwe is estimated at 200 000 subscribers within the next five years. Two further cellular licences have been awarded to Telecel and Econet, which are expected to launch their respective networks in the next few months.
In the face of increasing competition, Zimbabwe Posts and Telecommunications Corporation (PTC) is reported to be close to selecting a strategic partner in the existing NetOne network. This is expected to sell off 30% or more of NetOne and will generate funds essential for the continued expansion of the network.
The NetOne network in fact already covers most of the country, including all major centres, Kariba, Victoria Falls and Mutare. As demand grows Bulowayo and Harare have been plagued by congestion problems, something the third phase expansion will alleviate.
Paul McKibbin, head of Siemens Mobile Networks, says in terms of the latest contract signed with PTC his company will provide all the infrastructure for the capacity expansion, including switching equipment, base stations, towers, container shelters and power supply. It will also provide the billing system and voicemail. The expansion will be completed in phases over an estimated eight-month period.
McKibbin says: "The Zimbabwe cellular market is just one example of the huge potential of cellular telecommunications in Africa. South African companies are well placed to offer the experience and expertise which they have built up since the advent of cellular technology in this country."
"Once cellular networks are in place, there is even greater potential for wireless local local terminals, such as the CTI (Cellular Telephone Interface), and other GSM value added services."
As the leading provider of switching systems and GSM value-added products in Southern Africa, Siemens Mobile Networks is also currently active in Tanzania, Namibia, Lesotho, Uganda and of course South Africa.
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