Making reference to a 2016 network coverage report by the Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) established that, “314 Wards, hosting 354 000 households and a total population of two million people have no access to basic telecom services.” Therefore, in a bid to curb such disparities between urban and rural dwellers, as part of a build and transfer public private partnership project, Zimbabwe’s Universal Services Fund (USF) which Potraz is the custodian confirmed plans to build 250 new rural telecommunication sites. And you may wonder where they will scrape the money from? Funds contributed by mobile firms. The USF is a pool of funds contributed by companies in the sector which is used to provision telecoms in under-served areas of Zimbabwe.
This is in line with the organisation’s mandate to help develop telecommunications infrastructure in poorly serviced areas that may also be less commercially viable.
The government is currently haggling with leading telecom operator, Econet Wireless over infrastructure sharing which Econet reasonably argues that should be implemented on a one on one basis. But what is really surprising is that going back in history as was mentioned by Econet’s CEO, Douglas Mboweni, during a meeting with the Institute of Chartered Accountants in Zimbabwe delegation, that in 1998 Econet first offered to share infrastructure, instead of duplicating infrastructure, and share what was available and such proposal was point-blank rejected by its competitors, who viewed possession of infrastructure as a competitive tool. Econet was told that if it wanted infrastructure, it needed to develop its own’, which it did. Econet’s model is very simple. It will share infrastructure on an equitable basis, calling it one-for-one. Can you now really blame Econet? Absolutely not. These dealings of infrastructure sharing should be done in good faith.
“On the whole issue of infrastructure development, we are saying guys if we were all as creative as well as bold, why can’t we have other operators go and borrow and develop in other areas? Why is it that we are saying if you want fibre, go to Econet, if you want tower go to Econet? What do I get from you? So this issue of equity, even natural laws, there is fairness and justice that must be maintained,” he said.
Mobile companies contribute about 1.5% of their gross annual turnover to the USF, but Zimbabwe’s cash-strapped Finance Minister Patrick Chinamasa last year admitted that the government had taken over funds under the USF and used them for the broadcasting digital migration project. This should not be surprising considering that it’s being of late a norm for government or minister diverting funds to something else different and what is really interesting is that they ‘admit’. Remember the infamous Jonathan Moyo case of diverting US$2 million ZIMDEF funds through shelf companies Wisebone Trading and Fuzzy Technologies for his personal use and so forth. Again he admitted. This time around USF is currently inviting companies to help it build 250 sites in poorly developed rural areas but we can’t entirely deny the probability of these funds being just another front for something else totally different, i.e, repaying government’s loans. Telecom experts may as well confirm that the USF has not been utilizing funds for infrastructure development.
According to the Minister’s 2016 mid-term budget statement:
“The government will facilitate implementation of the project with funding drawn from the Universal Services Fund, to be reimbursed once the resources have been mobilized from the market.”
So why is USF coming back pleading companies for more funds? Because where the minister had initially diverted the USF funds to – digitization program for the state broadcaster didn’t reap any fruits. Therefore, hoping this time around he will stay on course and away from the USF money to cater for its sore purpose – building 250 sites in poorly developed rural areas.
Zimbabwe has a population of about 13 million and registered mobile users for all operators in the country have surpassed 12 million although the active users numbers are said to be below 10 million, according to industry reports.
USF said that:
“The project is planned to be implemented as a Build and Transfer Public Private Partnership Project. USF will be responsible for loan repayment to the full project sum and associated premiums.”
The sites built under this arrangement will be shared by the three operators (Telecel Zimbabwe, Econet Wireless and NetOne). They will “initially offer 2G and 3G services” and the sites will have towers, power systems, antennaes, remote radio units and backhauls among other equipment.
As a result of this, the government of Zimbabwe is seeking to award tenders to companies for the design, supply, installation and commissioning of a Multi Radio Access Network project comprising both passive and active telecom network equipment.
Interested suppliers have been asked to submit applications to the director general of the USF by 31 August, with further information available from towers@usf.gov.zw
3 Comments
“This is in line with the organisation’s mandate to help develop telecommunications infrastructure in poorly serviced areas that may also be less commercially viable”.
Building 250 new rural sites? Great project. May God help you to complete this project.
Hopefully the money for the project won’t be misused like before
250 rural sites? Wow! That’s a lot of work to be done. The good part of this is that, it will provide jobs for the locals. It’s really an enviable project. One other countries should learn from.