Zamtel has announced its marked mobile subscriber growth from less than 100, 000 to a million customers in within 12 months. Zamtel Chief Commercial Officer, Amon Jere, attributed the one million milestone to diligent leadership with an abated focus on investment into the Zamtel network.
The nation’s only total communication solutions provider has over the past 12 months invested to expand the GSM coverage from 261 sites to above 400 sites while at the same time deploying over 250 new 3G sites in the key cities across Zambia.
“I am proud to say that through an execution of a number of initiatives, our mobile market share has also grown from 3.5% to 11% and our broadband subscriber base has grown from 100 or so subscribers at the beginning of the year to over 4,000,” said Mr. Jere.
As a result of the successful implementation of a number of initiatives to improve efficiency levels, Zamtel posted an EBITDA margin of 13% at the end of 2011, the first time in the recent history of the company that a positive EBITDA margin was recorded.
In addition to the above positive developments, management also expanded the network core, implemented a new billing system, deployed a new ISP core and a number of Value Added Services, all adding up to the Zamtel growth.
Further, as part of the company’s strategic action to improve customer touch points, Zamtel managed to count six newly fitted centers –Manda Hill, Cross Roads, Cairo Mall, Lumumba Road, Livingstone Falls Park Mall and Levy Business Park. In addition, renovation works have advanced at Ridgeway which will also act as the regional office for Lusaka while the centres in Kitwe and Chipata are on schedule to be completed within quarter one of 2012.
And in living up to its brand promise of enabling lives, Zamtel launched a unique CSR program –Water for Life in partnership with World Vision, committing K2 billion in the first phase to bring clean water to approximately 1500 households in 9 districts across Zambia.
Zamtel is 75 percent owned by the Lap Green Group of Libya, with the Zambian Government retaining 25 percent share holding. Lap Green has its footprint in six African markets, providing voice, data, fixed, internet and business continuity services to more than 4 million customers.
Upon privatization in July 2010, Lap GreenN embarked on an investment program of USD 170 million. The first phase of the investment program focused on expanding the GSM network coverage from 197 to 440 as at November 2011, and a 3G network being deployed in all the major cities across the country.
Following the re-organization, Zamtel recruited new talent and invested heavily in training and developing of its employees while at the same time building a new brand that is appealing to Zambians.
These measures resulted in the growth of mobile market share from 3.5% to 11%, 3000% growth of fixed broadband customers, a boost of revenues by 50%, staffing costs being reduced from 80% to 23% of revenues and overall operating costs being reduced from ZMK 431 billion as at 31 March 2010 to ZMK 190 Billion, representing a 55% reduction.
wel come to the club bane
11% means that the market share in zambia is standing at 9,090,909. If this a the tru mobile market in zambia it leaves only about 4000 people without mobile phones in the country! Woe!
We still repossessing Zamtel. Period and non negotiable.
SO WHAT? DO WE NEED SUBSCRIBERS TO INCREASE? THAT IS GOOD SINCE SOON WE WILL HAVE IT AS OUR OWN THUS IT NEEDS TO YIELD MUCH HARVEST. BUT THE MOST IMPORTANT IS JOB CREATION. IT COULD HAVE SOUNDED BETTER IF IT READ “Zamtel’s Employees growth hits 1 million”. THAT IS A TRIUMPH IN THE PROFIT THE LIBYAN COMPANY IS MAKING FOR ITS COUNTRY.
No matter how much money you put in,we still want our company back,you are just using our money to expand the company
we don’t care.
1million subscribers or not, we are repossessing Zamtel whether you like it or not. Trying to dupe us that the co. is doing fine will not do . you bought this company for a song and as such we are taking it back.
AMON JERE WHO ARE YOU TRYING TO IMPRESS?
Zamtel is for Zambians, we are getting it back, period.
come on guys after the issue of repossession starts all of a sudden your subscriber base triples? that is not a good reason why we shouldn’t repossess it infact now that our cow is fatter in your custody as a result of our green grass, thank you very much now can we have it back? i think we dont need your dubious help anymore
You may say what you want bafikala we will still get this company! Ati Libyan? The devils killed every black person they came across when they were sent by the Americans to kill their own leader!
Going by this article, it seems Zamtel is doing pretty well. That’s very good business news for Zambia. We wish then well and success, whether they are renationalised or not.
To those wondering why such statement at this point in time, remember that companies have Chairmen and public relations office who have the job of giving the public correct information that helps retain teh good image of teh company. After the disastrous oil spill in USA teh BP chairman was castigated for not taking a front foot in making sure that the company was well represented in the media, to check teh negative press mainly coming from politicians, as is the case in Zambia at the moment. if it was your own company under political pressure and misinformation, you’d do well to at least give teh public useful information.
All the right thinking zambians would commend this company for the turn-around of fortunes. ZAMTEL was headed for the doldrums. Infact, with this kind of subscriber base, it menas the market value of this company has gone up 250%. If the PF government decides to take over ZAMTEL, it means LAPgreen will have to be paid the market value of the company currently running into Billions of Kwachas.
sell it to me
I believe people need to be prosecuted for the wrong decisions and the way the went about selling Zamtel. But to reposes it just because you dont like the Libyans is not good reason and danger to investment. This company seems to be doing well now under the new team but why disband a winning team? Yes, Dora and the rest must be punished for lifting up her skirt in the sale of this company.
Sometimes we Zambians behave as if we are drunk. First KCM was sold to Vedanta for US$25m and Mr. Sata was part of that government. He did not resign or even object. Secondly, we are bent on repossesing Zamtel without a policy direction on whether we intend to keep it as a parastal or the intention is to sell it to a preferred customer for more money. Thirdly, Lap-green paid US$257m and has spent US$170m in investments which amounts to US$427m. Are we mad, to spend such money on Zamtel when we could build railway lines, roads and hospitals with it and still tax Zamtel all we want. Fourthly, there has been deafening propaganda that government paid K3 trillion for 25% of the shares without any one asking who the government paid this K3 trillion to. This is a very cheap lie.
I have observed that some people use emotions instead of analysing facts.Some people dont know the difference between Privatisation and Liquidation. Dont understand valuation model used in Zamtel.Debt free Company and Net worth,Insovency etc .hence some comments leave much to be desired.We are paying for this iliteracy in this country.God help us.
this is a great post.i appreciate this good analysis
However, if the government has found a buyer who can pay US$1 billion for Zamtel, then it will be worth the trouble and the loss of investor confidence. The argument that some one pocketed money must be taken as propaganda as no one including ZDA officials or former government Ministers have been officially accused or charged for corrupt practices under the ACC Act.
Todays articles are receiving comments from Kaponyas only! imwe bafikala u are all PF with G12 certificates without any college and University certificate, whether u repose Zamtel or not, stil the company has improved very much in private hands than how it used to perfomr wen it was under Gvt hands nor wil it ever perfomr any beeter than this wen it goes into Governemment! Lap Green did do anything rather than buying a company which was on sale.
Even if we repose Zamtel, and it goes back to Zambian Gvt, how shall we run ti wen we failed at first? when the MMD gvt advertised the sale of Zamtel, no Zambian company came on board to buy, so if King Cobra and his group of buffoons u cal Ministers get Zamtel back, wil they run it? or wil they sale it ot an Angolan firm?
Govt cannot run business. The 90s born please HALT. We did thid nonsence a long time. Govt cannot run business. Money for reinvestment will go to room 99 at finance and be directed at the things. Zambia when shall u learn.
:)>-
Congratulations Lapgreen! the sale of Zamtel was a very good move, coz it would have gone under had nt MMD Gvt sold it! even if PF gets it back, King Cobra wont manage to run it, he wil instead sale it to some other foreign investor! Sata, his bufoons u cal ministers and all of u Pf blind supporters, i can assure u ur G5 u cal a President wont manage to run Zamtel, the company wil go down! if it wont go down, it wil again be sold to another foreign investor!
If PF cant manage to buy tents and cover over 23, 000 metric tonnes of our hard earned maize in Nyimba and otehr districts across the country, how the hell wil they run Zamtel? PF cant say the MMD never planned for storage of maize but MMd lost before the rains started, we av been with PF since Oct, 2011! Pathetic Failures (PF
many don’t know how right you
paulsen were r u now…u thot zambians were under u huh
Fuseki iwe chi Jere, chi MMD.
Chi Vox Populi, uli chimbuli sana iwe. Taulemona how things are beginning to change with Cobra we mbushi we.
Am impressed to hear people with enough brains speak. All along insensible people have just been talking over things they dont even understand.
Feels good that we are taking back our strategic company at it’s re-fattened state. @ Bachelor tell more on the Kemetians that were murdered. May God protect Zambia even more; he has won us back our baby. Lapgreen ichilishina ububi.
Yes Zamtel can make all that money not all is remaining in Zambia. Most of it is for Lapgreen,so this news is not exiting at all. Repossess it please
With the freezing of all Zamtel Bank Accounts today by the government, there should be an urgent decision on the way forward so as not to jeopardize the operations of the company and i only hope measures have already been put in place.
@Ngoni King, you are too right. Just wait, our landlines will all be dead by the weekend.
This news just demonstrates how useless the previous management and staff at Zamtel were. It’s good that they were fired! The Zambian market is ripe communications companies to harvest bumper profits (see Airtel, MTN), yet Zamnet had a paltry subscriber base and was almost broke. The achievements announced (if true) just demonstrate how viable the company was. Now we have some geniuses saying we should take it back so that we can send it back to the ICU.
All of you calling for repossession despite this are clearly clueless. The company’s mobile unit has grown 10x since privatisation, clearly that shows that it is better in private hands and yet you still say ‘we want it back’. Its like a homeless man being put in a mansion and given a job and then saying ‘ah but I preferred begging on the streets better, take me back.’
Your rationale is pointless, you’re obtuse and without understanding. At least if you gave credible arguments for your opinions perhaps you would have merit in your refusals but its now obviously clear- you’re just plain ignorant.
This is clear evidence that ZAMTEL was grossly mismanaged and that a privatization was necessary. The clueless and ignorant amongst us think ‘privatization’ is a bad word. They think because something is state owned its somehow qualitatively better, thats silly.
ZANACO was privatised and look at the marvel it has become! ZAMTEL was privatised and look what has become of it within 2 short years! I’m not saying everything in the ZAMTEL privatisation was perfect, but definitely in terms of long term value this was a good move.
Who said privatization is bad? The issue about Zamtel is that it was fraudulently privatised. Whoever tald you that Zambians cannot run their companies is a fool. I guess you have no self-esteem and you think only a white man can develop your country. Shame.
and they are doing this with only 25% of the original work force
Mr Amon please stop telling lies. Firstly what subscriber base is this? are these active or the total base? ZICTA must put a stop to Mobile operators from cheating the public just last week we were told Zamtel had reached a subscriber base of 800,000 so when did you acquire the new subs? & tell us the current cost of acquisition? considering Marketing costs have risen tremendously! Secondly stop claiming 3G and expansion network which was already contracted by previous Management & government through the EXIM bank of China and ZTE as part of phase 3 expansion (any one doubting you can check these facts with Min. of Telecoms)? and Mr Jere EBITDA is a KPI of no significance to us please tell us if you are making Profits yet? There has been more cosmetic change than real change.
@ Global citizen I bet one of the positives is that there was an effort at restructuring the workforce but this percentage. The negative is that it was done without full understanding of the landline business this is a top management that is so focused on Mobile that they did not understand the full labour requirements to efficiently run land line services. No matter where you are in the world the Landline service is a more labor intensive service for both service provisioning and maintenance. Zamtel under LAP GreenN followed Mr Rupiahs twisted comparisons in Labour size between Zamtel (2000+) and Airtel (700) in which he said that Zamtel should get to the same size in workforce as Airtel….and reduced it to the nearly the same size…the service has now suffered the consequences.
It is true, Black persons were killed in Libya , shows how just Arab heats black people. Arabs consider a black person a slave – in the past they killed men so that they don’t sleep with their women whom ever got as slaves, this is the reason we don’t have lot of blacks in the middle East despite them conquering African Lands.
Arabs live on the continent of Africa occupiers!
@mukatsha@zamtel you make a good point there. but zamtel i think has also improved the type and quality of service. neighbouring countries have ADSL lines and cheaper internet services and zamtel just started do this the last few months. the have reinvested in modern equipment. the landlines are likely to reach more people under a privately owned zamtel than a gov owned zamtel. technocrat at zamtel will tell you they equipment was near obsolete making impossible for the to provide the service we need. financial health of the company is on the books for all to see. not a pretty one. i must say.
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