80pc contracts unfulfilled: NetOne NetOne is the only company that recorded growth in its market share from 28,3 percent to 30,7 percent

Business Reporter

NETWORK services provider, NetOne, says about 80 percent of contracts awarded to various interest groups in the past have not been fulfilled due to capacity challenges faced by the recipients. NetOne acting chief executive Brian Mutandiro said the company is mandated by Government to give contracts, particularly powering of base stations, to various communities as a way of empowering different sectors of the economy.“We have awarded contracts to various groups. Unfortunately 80 percent of contracts have not been fulfilled because of capacity issues. People do not have funding and for some reason people are failing,” said Mr Mutandiro.

As such, NetOne is engaging the beneficiaries to find common ground.

“As a network we want to dialogue and find out how we can make sure they are able to execute those contracts,” he said.

Mr Mutandiro was speaking to parliamentarians who are members of the Portfolio Committee on Youth, Indigenisation and Economic Empowerment recently.

NetOne has been bedeviled by management problems and this has seen some senior managers being sent on forced leave.

Mr Mutandiro however, sees a bright future going forward.

“There is more business going forward. We believe that we have more opportunities than challenges going forward.

“As management we are focusing on the bottom line. We have embraced the principle that we must perform and do justice to the work that Government has done in guaranteeing some of the loans that have come to NetOne,” he said.

In that spirit, NetOne is re-looking at its business model to tailor make it to the infrastructure presence.

He said in the past NetOne was focusing on putting the base stations where business focus was not on the distribution of airtime.

“For example, you can have a base station that is launched today but there is no airtime in the vicinity. So then you have a lopsided situation where you spend money on infrastructure but you are not providing airtime. So we are addressing all those gaps. For us these are opportunities, low hanging fruits that we can quickly covert to revenue.

That is why I am confident that by the end of this year we will have a positive bottom line and we will declare a dividend to Government,” said Mr Mutandiro.

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