Telecel Licence not yet renewed! What’s the worst case scenario?


Telecel Logo

Telecel Logo

(Source: My Zimbabwe)

In news elsewhere on the web, Telecel Zimbabwe has not renewed its licence because it has not complied with some “indigenization” law.

With this law will benefit Zimbabweans?

weans or not is another issue, we don’t care. It sounds like some vote buying gimmick, to me!

However, I hope the Telecel issue

doesn’t take the worst tu

rn. Telecel has been on the mobile landscape and may have forced Econet to reduce prices as a result of its fierce competition. Telecel, the fastest growing mobile operator has made huge strides in improving their services.

Their 3G internet is now faster and almost always on. Voice clarity is now great! And we have some cool promos!

Telecel worst case scenario

Let’s look at some worst case scenarios that can befall hapless Telecel

  • The indigenization vultures could have a field day. They would come swooping for the rich pickings under the guise of “giving blacks their economy”. Instead, we will see the company collapsing as the vultures seize anything to make a quick buck on the loot. Well, it can happen. Didn’t wesee companies like Senator Express going into the hands of “locals” and suddenly go down the drain. Those clean buses became rickety pieces of junk that saw people running to other bus companies.
  • Or, the firm could get its licence revoked and soon the Telecel subcribers will have to migrate to other service providers. We will be left with only two networks. And the gap will widen between Econet and Netone, with Econet taking the bulk of the Telecel loot. Econet will have even less reasons to use price as a competing factor as they would have unwittingly been made a monopoly.
  • Or, Telecel shareholders will pull out fast leaving the company with less cash to push further its services. Reeling from liquidity challenges the company may face a natural death.

However, Telecel may have the local people have more shares in it, stunning the vultures who want to swop on the company. Infact this is the best option for all and sundry. Econet may not like it though. Even Africom may have wished secretly for the collapse of the giant so that they push their CDMA powered Network and pull in cost conscious Telecel subscribers.

We wait with abated breath to see the outcome of this impasse!


2 comments on “Telecel Licence not yet renewed! What’s the worst case scenario?

  1. My opinion is telecel & africom are not serious we are tired of econet. They are not aggressive enough. I somehow feel the shareholders are the stumbling block (I stand corrected). A few years back cellC was jus like telecel but thru innovation plus a level playing field they have grown and are a force to reckon with. Verizon is a cdma network if I’m not mistaken and they are doing well.

    Let me challenge guys from africom & telecel come to this forum lets talk lets hear what you guys have to say. Coming to think of it they never comment on these forums well that’s PR & Marketing Zim style.

    Why don’t you write an article on Potraz what is their take maybe africom’s hands are tied coz i really believe Mr Kashangura had a greater vision for africom or do an interview with him

    • Lets not judge the company too harshly, considering this indeginisation issue is hanging on their heads, but honestly Telecel and Africom shock me, with so cheap prices why are they letting Econet do as it wants?

      Soon I will introduce an interviews section on the blog with videos and all.

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