State-controlled converged telecommunications firm TelOne, spent a total of $25 million in the year ended December 31, 2016 compared to $16 million on various capital projects showing a 56 percent increase in capital expenditure.
In a statement accompanying the results, TelOne Managing Director Chipo Mutasa said of the $25 million injected in capital projects, $8 million was self-funded.
“In a bid to curb continued decline in voice revenues which dropped by 25 percent over the past year, the company spent $25 million in capital projects with $8million being own funding,” she said.
With this capital injection, the company is growing its network realizing the vast opportunities broadband is bringing in the sector. TelOne managed to role out 31 000 ADSL lines and 133 hotspots in the period under review.
The TelOne boss expressed concern on the prolonged facilitation of the $98 million China Exim Bank loan saying it delayed the company’s progress in realizing some of its targeted fortunes.
“The year saw the commencement of the National Broadband Project though it was delayed by two years due to the lengthy processing requirements that needed to be met with financier, China Exim Bank. The delay impacted on the speed which the company could transform its fortunes where revenue mix remained predominantly driven by traditional voice revenue which is on a rapid decline,” she said. “The project is however bringing in capacity for the company to venture into new services and broaden its presence in the broadband market.”
The company noted with optimism that with the roll out of the National Broadband Project, data revenues will grow.
“Data revenues are expected to grow significantly as a result,” said Mutasa.
Mutasa also said their fixed broadband revenue was 18 percent up to $33 million from $25 million in the prior period.
“The company enjoyed positive growth in fixed broadband revenue which increased by 18 percent from $28 million in 2015 to $33 million. Supporting the growth in fixed broadband revenue is a 9 percent increase in subscriber base moving from 73, 863 in 2015 to 80 745 in 2016,” said Mutasa.
TelOne is currently rolling out its prepaid landlines across the country for more convenience to their customers.