Telecel announces US$200m deal

Minister of ICT, Supa Mandiwanzira

…moves to close coverage gap and introduce LTE

TELECEL Zimbabwe will be rolling out Long-Term Evolution (LTE) data services to expand it’s network coverage through a government brokered US$200 million finance deal, the Minister of Information, Communication and Technology and Courier Services, Supa Mandiwanzira said on Wednesday.

Mandiwanzira said the mobile telecommunication company which is, 60 percent own by government was working to put finishing touches to the US$200 million finance package which upgrade the network’s infrastructure and introduction of technologies like LTE.

“At this stage, negotiations and discussions are ongoing with financiers for an investment of over US$ 200 million to kick-start the Telecel project.  More details of this funding will be communicated in due course.  This funding will go a long way in ensuring that the Company rolls out new technologies to meet subscriber needs,” said Mandiwanzira.

He said Telecel was already upgrading its network and that the expected capital injection would allow the mobile operator to introduce LTE 4,5G.

“I am aware that the company has already commenced the network upgrades necessary to close the identified and well-known gaps in its service provision and will also be rolling out its 4,5G LTE infrastructure by the third quarter of 2017,” he said.

Telecel has had issues around its licensing and shareholding and failure to comply with the Indigenisation and Economic Empowerment Act which the minister said was now resolved following the acquisition of 60 percent stake by government.

“We are all aware that in the past three or so years, Telecel’s existence was clouded with uncertainty due to issues to do with licensing, shareholding and non-compliance with the Indigenization and Economic Empowerment Act. This state of affairs led some into questioning and doubting the company’s future.  As a result some of Telecel customers jumped ship during this period of turbulence,” Mandiwanzira said.

“It is with great pleasure that I stand before you this evening, to announce that Telecel has turned a corner and those issues are well behind the vibrant red brand and to assure you that the company’s  future is bright orange.  I am here to proudly declare that the government, which is the new majority shareholder in Telecel is very keen to support any initiatives that will position the company as a vibrant, successful and profitable entity,” he said.

Mandiwanzira said Infrastructure Regulations SI 137 of November 2016 enables infrastructure sharing to limit duplication and gear investment toward product innovation and better customer service in the country and in particular, in underserved and remote areas.

“Telecel supports this government’s position on infrastructure sharing and even prior to the promulgation of the SI 137 Infrastructure Regulations we were already working with other operators in identifying and sharing infrastructure,” said Telecel chief executive officer, Angeline Vere.