TelOne broadband via satellite to grow revenue

TelOne broadband via satellite to grow revenue
Published: 16 June 2014

STATE-OWNED telecommunications company TelOne says its new broadband via satellite product will contribute at least $5 million to company's annual revenue within a year.

The launch of the new product, Ka Band Satellite Solutions, yesterday follows the satellite broadband contract signed between TelOne and Avanti Communications, a leading UK-based satellite operator, in April this year. It aims to provide high speed internet and Ka band data services for business, rural areas, and mobile carrier and defence systems.

TelOne managing director Chipo Mtasa said the company had invested $1 million in acquiring the customer service division's new equipment, which would be used on the roll out of the new product.

"We think that for the first year, if it can contribute at least $5 million to our annual revenue it will be good. With the increased uptake then, it should contribute much more going into 2015," Mutasa said.

She, however, said the company did not spend much money for the project due to the partnership with Avant Communications.

"The hub doesn't belong to us, so the startup cost was very minimal.It's a partnership with Avant Communications and will then operate using the hub,so it has cost us items of just acquiring the customers service division equipment which are satellite dishes and other terminal equipment and that to us is around $1 million," Mtasa said.

She however, said the new product will not only grow revenue, but also to extend the broadband coverage especially to outline areas in the rural and urban centres in Zimbabwe.

She added that the company sought to deliver broadband services to thousands of consumer, enterprise and public sector customers in Zimbabwe.

TelOne is one of the 10 parastatals earmarked for restructuring, commercialisation and privatisation.

The country has 78 parastatals with the majority of them loss making and bleeding Treasury.
- newsday
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