Zimbabwe Standard (Harare)
Ndamu Sandu
17 October 2009
DURING the financial sector's heydays, a commercial bank was urging Zimbabweans to open accounts because it was "a big bank with a big heart". Not to be outdone, a smaller rival hit back saying size does not matter, but the service.
Six years down the line, in another sector mobile operators are locked in a mini-war for the control of the market.
The use of multiple currencies in February has spawned massive investments in the sector as mobile operators embark on programmes to grow their subscriber base.
The industry had endured a decade of under investment as the economic crisis took a toll on the sector.
The massive expansion programmes have resulted in the increase in the mobile market penetration rate to 21% as of August from 14% in February.
Mobile penetration rate describes the number of active mobile phone numbers (usually as a percentage) within a specific population.
Advertisments placed in newspapers and on radio and television show operators "beating their own drums" as they tussle for the hearts and minds of subscribers.
Econet, the largest mobile operator by subscriber base, says a million people have "seen the light and joined the big family, bringing its total subscriber base to over two million".
"Check your figures again. We are now three times bigger than the other mobile networks put together and five times bigger than the next competitor," it said in one of its adverts. "As you read this, seven out of 10 of your family and friends are already part of the biggest family," it said.
Then Econet goes for the jugular: "So, what are you waiting for! Make the switch and join the biggest family. When we say they are exciting times, we mean even for you."
Telecel is also throwing punches saying that it strives for quality everyday.
"Our recent re-certification confirms Telecel Zimbabwe as the only ISO certified telecommunications company in Zimbabwe and the region," it boasts.
Telecel believes it has been there for the subscriber in good and bad times.
"Difficult times sometimes call for drastic measures, but as Telecel, we have remained true to our commitment to offer you a personal, quality service," it says in one promotion hype.
"During the challenging times, we kept you roaming, and our contract customers remained unaffected without switching off packages or being forced to pay something upfront. "We believe this is what makes for our valued relationship -- in good or bad times."
"The biggest thank you that we can give our subscribers is to ensure that we build a quality network that you can be proud of," it says. Last year, Econet switched off contract subscribers.
Telecel is not intimidated by its rivals and says it will increase its subscriber base to 700 000 by the end of the month.
As of July 31, Telecel had 355 000 subscribers.
By end of October, it plans to cover "10 new geographic sites countrywide and by the end of this year, the plan is to cover 46 new sites countrywide".
The strategic plan is to ensure all highway corridors out of the major urban areas of Harare, Bulawayo, Mutare and Gweru are covered throughout, it says.
NetOne managing director, Reward Kangai, said the mobile operator would advise the market in due course on its expansion programme.
"We are not in a position to issue a press statement as of now," he said.
Kangai could not be drawn into revealing the company's subscriber base.
While this "mobile war" is escalating, the biggest winner is the subscriber who can switch from one network to another.
In the past sim cards were a precious commodity and were even sold on the black market. At one point, a single sim card was being sold for as much as US$150.
However, the use of multiple currencies has seen prices coming down to as low as US$10 inclusive of airtime.
Stiff competition has also meant a reduction in tariffs in another plus for subscribers who were paying more for the service than their counterparts in the region. The scramble for the market share has also seen operators churning out products to attract customers.
Econet recently launched bonus minutes, where customers get free minutes when they buy airtime. Econet already has a service where text messages are virtually discounted.
The products are part of the operator's continuing efforts to develop consumer-focused products and services, says Econet's corporate communications manager Ranga Mberi.
But does size matter in the telecommunications industry?
The bigger the network, the less an operator pays in interconnect charges.
Interconnect charges are those incurred when one network processes calls from another.
For instance, if an Econet subscriber calls a NetOne subscriber, Econet is supposed to pay NetOne interconnect charges which currently stand at US$0.07 a minute.
The selling-point of Econet's new "Be part of something Big" campaign is that it is cheaper for mobile customers to make calls within the Econet network, because they don't have to pay for interconnect charges.
This appears to be an attempt by Econet to attract customers from its rivals, Standarbusiness has gathered.
Information and Communication Technology Minister, Nelson Chamisa, said competition was to the advantage of the customers and even operators in terms of quality of service and innovation.
He said in the past eight months service has improved and there is deployment of infrastructure to rural areas as part of the Information and Communication Technologies (ICTs) revolution.
"We want to make ICTs available to all and sundry. ICT is the last bridge between the rich and poor," he said.
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