The Zambia Telecommunication’s (ZAMTEL) new owner could revitalise the company, gaining a 19 per cent share of the mobile market by 2015, up from its current four per cent share.
According to Onda Analytics, obtained by ZANIS today, the privatisation will lead to a major operator taking over Zamtel, providing a serious threat to existing Zambian mobile operators, Zain and MTN.
Interested parties, including MTNL, Telecel Globe (a subsidiary of Orascom), Telkom SA and Vimpelcom officially began due diligence this week.
According to report lead author, Daniel Jones (Partner), “The new investor will have to turn around an operator in crisis.
A strategy along the lines of a new entrant will be needed, as Zamtel has fallen further and further behind in the mobile market.
High mobile tariffs and low penetration in Zambia present an opportunity for the buyer. Aggressive price competition and going after subscribers new to the market will help Zamtel grow its market share and challenge its competitors.
Onda Analytics’ new report considers the strategies that a new owner would need to adopt to turn the operator into a significant mobile player in Zambia.
Under the right strategy, Onda Analytics forecasts Zamtel to grow its mobile market share from four per cent in 2009 to 19 per cent by 2015, increasing its subscriber base from 160 000 to 1.8 million.
The report also analyses the strategic importance of Zamtel’s other assets, including its fixed line network and the WiMAX network currently in deployment.
On top of increasing revenues, Zamtel would need to keep a close check on costs. “Zamtel’s bloated cost base, as a result of its large headcount, has led it to insolvency and the current privatisation process” explains report co-author, Tom Harden, Partner at Onda Analytics.
Today, the entire operator’s unionised staff have agreed voluntary redundancy. A massive staff reduction programme would need to be carried out by whichever company takes over Zamtel.
[ZANIS]
Easier said than done. All the best however.
Who is this owner? Someone somewhere in independence drive knows who this owner is
Maybe the cost of calling will come down.Its damn expensive calling back home!!
As long as jobs will be protected, who gives a damn.
The problem was not Chiluba or Privatization. The problem was cleaning up KK’s mess.
Welcome to the corporate world. Here – where the winner takes it all and the looser has to fall.
Can we have the jobs saved please. Politics have taken centre stage at the expense of Business decisions to be spear headed by proffessionals. Loss of 3000 jobs is the biggest joke of 2009.
#5 Mrs Capitalist
You have grasped the language of your husband very quickly.Iam sure you are grafting very well.
Advise me on ZESCO ‘s structure. Job evaluation is also needed at ZESCO for it to operate cost effectively. I believe politics is finally killing Zesco as well as lack of serious recapitalisation by Chiluba, Levy( MHSRIP) and the current RB & Sons Ltd. At ZAMTEL, job loses will not be avoided becuase of the blotted structure.
It will be in someone’s dream to think that Zamtel will cause immediate panic to the other operators once taken over by the so called investor. First Zamtel will have to undergo a serious and innovative investiment phase. There is no reasonable doubt that competition will be the order of the day in this sector. Zamtel’s competitors won’t be sleeping at all during the period under review. Zain has proved beyond any reasonable doubt that it is a force to reckon with businesswise going by the state of the art equipment they upgraded to recently, the services they have rolled out and many more other services I feel they are holding on to for now. Just wait and see. Tarrifs going down, I doubt it coz Zamtel must have not caused the current tarriff charges. In coming investor, Ulimbe Mwana.
Well i think ZAMTEL is over staffed so some jobs stand to be lost. Why on earth should we advocate having three people doing a job that bone person can do. Lets advocate foe effeciency. Love you all