Telecel denies reports of imminent collapse

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Harare(New Ziana) – Mobile telecommunications company, Telecel Zimbabwe on Friday said it had adopted a five year strategic plan in pursuit of a recapitalisation plan which it hopes will turn around its fortunes.

The Zimbabwe Government, through internet firm Zarnet, owns 60 percent stake of Telecel Zimbabwe which, according to its website, has more than 1,7 million active subscribers.

In a statement disputing recent reports that it was on the verge of collapse, Telecel said like all other local companies, its operations were being affected by the current economic challenges afflicting the country.

Telecel also attributed its operational challenges mainly to limited funding the company had received over a long period, adding in light of that, it had formulated a recapitalisation plan which it was pursuing.

“Plans are underway to address the issue of recapitalisation and in this regard, a 5 Year Strategic Plan has already been formulated and adopted,” the company said.

“The finalisation of all outstanding financial statements is on course and this will open avenues for new funding from financial institutions.”

Telecel however did not specify the amount of money it needed to recapitalise.

The telecommunications firm also blamed its challenges on inflation and the current tariffs which it said continued to lag behind inflation.

“(This has) affected our ability to meet foreign currency denominated obligations, especially spares for equipment and Service Level Agreements and support,” the company said.

The current drought induced power cuts had also badly affected its operations, Telecel said.

“The Company’s main switching centres are in the industrial area and have been subjected to prolonged power outages which have resulted in the company’s technology operating costs ballooning due to the use of alternative power particularly diesel, and has in turn affected base station availability in other parts of the country.

“The Company is in advanced discussions with the power authorities and government officials in the Ministry of Energy to ensure a dedicated power line to the switching centres and in addition the company is investing in alternative power solutions such as Tesla solar batteries for its base stations.”

New Ziana

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