Econet & Telecel Lose Market Share Whilst Netone Makes A Slight Gain – POTRAZ Q2 Report

The second quarter witnessed Netone slightly gaining market whilst both Econet and Telecel slightly losing their market shares. Netone took 0.9% of the pie whereas Econet and Telecel lost 0.3% and 0.6% respectively.

Netone’s gain can be attributed to enticing offerings which are making customers defect from other Mobile Network Operators (MNOs). When tarrifs where raised in April (just as the second quarter begun) Netone was that service provider which gave both, relatively cheaper offerings and simultaneously a relatively reliable network. With cheaper offerings, Netone stole subscribers from Econet and with a reliable network, it stole subscribers from Telecel. As Econet still is pricier than Netone theres a good chance that Netone will continue to steal its users. And as Telecel’s network still gives it’s existing subscribers problems, Netone will continue to bite away it’s pie too.

The gain made by Netone comes on the heels of an increase in the number of its active mobile subscriptions much more than other MNOs. The second largest grew its active mobile subscriptions by 6.1% and Econet grew by a meager 1.3% whilst Telecel licked it’s wounds by losing 0.49% active mobile subscriptions.

Whilst Netone’s increased market share and active mobile subscribers are not that massive, it’s a victory worth celebrating for two reasons. The first being that, Netone has a high chance of also converting the new and active subscribers into users of it’s other growing product – OneMoney. And secondly, new users means an increased firepower of its network effects which attracts new users as well.