State-owned fixed line operator Telone says it is in a renewed drive to increase its subscriber base in order to grow the company’s revenues and return to profitability.
Last year the company made a loss of $24.9 million due to a decline in voice revenue and the high cost of servicing legacy loans.
Earlier this month Telone said the legacy debts had risen to $374 million.
TelOne managing director, Chipo Mutasa told journalists toay that the company’s subscribers had declined from 300 000 to around 230 000.
“We hope that we can grow it back to 300 000 and beyond in the next couple of years because the landline is still a very relevant service and people want convenience and affordability,” Mutasa said.
“We are seeing our revenue coming back up this year we are about 3 percent up from last year but having said that last year we saw a sharp decline in our revenue so that growth while it is encouraging it is not sufficient to completely take us out of the red.”
The company’s revenue last year declined 17 percent to $114 million due to the high use of Over The Top Services in preference to traditional voice services. Voice revenue dropped by a third to $97 million from $73 million in the previous year. – The Source