HARARE – Leading mobile network operator Econet Wireless Zimbabwe (EWZ) is accelerating the rollout of 5G base stations, aiming to solidify its market position amid stiff competition in the evolving telecommunications sector.
The move comes as Zimbabwe’s tech landscape heats up, with global internet provider Starlink making inroads into the local market, compelling existing players to enhance service quality to maintain their foothold.
5G Expansion in Zimbabwe
Presenting a trading update for the half-year ending August 31, 2024, EWZ chairman Dr. James Myers outlined the company’s aggressive efforts to expand 5G infrastructure.
“In working towards our vision of a ‘digitally connected future that leaves no Zimbabwean behind,’ we have deployed an additional 32 5G base stations in Harare, with plans for 120 more sites. This densification has significantly improved maximum user throughput, driving traffic growth, increased data market share, and enhanced quality of service,” said Dr. Myers.
The rollout is part of Econet’s strategy to leverage next-generation connectivity to boost internet speeds and create opportunities for sectors such as healthcare, education, and smart cities.
Challenges and Opportunities
While 5G promises faster internet and transformative capabilities, analysts caution that implementing the technology in Zimbabwe will face hurdles.
- Infrastructure Costs: The higher frequency of 5G signals requires additional cell towers, particularly in rural areas, where deployment may be prohibitively expensive.
- Device Compatibility: Consumers will need to upgrade to 5G-compatible devices, a potential barrier given that many Zimbabweans currently use older models.
Despite these challenges, some industry experts predict that the demand for better connectivity will drive consumers to adopt 5G-compatible gadgets.
Growing Competition from Starlink
Econet’s expansion efforts coincide with the entry of global giant Starlink, whose satellite-based internet services threaten to overshadow local operators if they fail to match the quality and reliability of service. Econet’s focus on 5G aims to maintain its competitive edge by delivering superior user experiences and increased network capacity.
Dr. Myers highlighted the strategic importance of the rollout, stating, “This aggressive rollout of next-generation data connectivity will enable us to compete at a world-class level and improve user experiences.”
Strong Performance Indicators
During the reporting period, Econet reported significant growth in data and voice usage, with data consumption rising by 56% and voice usage increasing by 36% compared to the same period last year. Data revenue surged to contribute 47% of total revenue, up from 38%, while voice revenue dropped to 41% from 49%, reflecting the growing shift towards data usage.
The company also modernised its network to meet the rising demand, translating into improved revenue and service delivery. Additionally, Econet declared and paid interim dividends of 0.41 US cents and 0.26 US cents per qualifying ordinary share for the half-year period.
Future Outlook
As Econet continues its 5G rollout, the company aims to bridge the gap between urban and rural connectivity while enhancing its ability to compete against international players. However, the success of this initiative will depend on overcoming infrastructure and affordability challenges, ensuring that more Zimbabweans can benefit from next-generation connectivity.