Econet Scales Up 5G Expansion Amid Intensifying Competition

Econet Wireless Zimbabwe is rapidly advancing its 5G infrastructure deployment as competition in the telecommunications sector heats up, signaling a shift toward next-generation technology in the country.

The company recently unveiled the addition of 32 new 5G base stations in Harare, with plans to establish 120 more sites as part of its expansive rollout strategy.

Econet Chairman Dr. James Myers, presenting a half-year update, highlighted significant growth in data traffic and combined market share due to these upgrades in network capacity.

This ambitious project aligns with the company’s vision of creating a digitally inclusive future, ensuring no Zimbabwean is left behind in accessing high-speed internet services.

Econet’s 5G network promises faster internet speeds, enhanced user experiences, and opportunities for sectors like healthcare, smart cities, and education, positioning the company as a leader in connectivity.

The rollout comes amidst Starlink’s market entry, intensifying pressure on local operators to elevate their service quality and maintain relevance in an increasingly competitive environment.

Despite the excitement, analysts note challenges tied to infrastructure costs and device compatibility, particularly in rural areas, where deploying 5G networks can be prohibitively expensive.

Additionally, the transition to 5G will require users to adopt compatible devices, a potentially significant financial hurdle for consumers still reliant on older technology.

Econet, however, anticipates that demand for cutting-edge services will drive gadget upgrades, bolstered by the superior performance offered by 5G connectivity.

During the reporting period, Econet recorded a 56% increase in data usage and a 36% rise in voice traffic compared to the same period last year.

The growing demand for data contributed to 47% of revenue, up from 38%, while voice revenue decreased to 41%, reflecting the shift toward digital communication.

Interim dividends of 0.41 US cents and 0.26 US cents per qualifying ordinary share were declared and paid, underscoring the company’s profitability amid its technological advancements.

The competitive landscape, shaped by global players like Starlink, is pushing Zimbabwe’s telecommunications industry toward rapid modernization and greater innovation.

Econet’s strategic investments in network upgrades and user experience enhancements reaffirm its commitment to retaining market dominance in a challenging economic climate.

As technology evolves, the race for digital connectivity is set to redefine the telecommunications sector, with 5G serving as the cornerstone of this transformation.