NetOne kicked out of Borrowdale office after failing to pay rentals

Share

On the 24th of October NetOne was kicked out of their Borrowdale office due to rent arrears of nearly  ZW$800 000. The telco was served with a notice of attachment as well which saw the seizure of all removable property from the offices.

NetOne reportedly owes Mutual Finance $684 281 rising to ZW$775 182 because of costs. According to reports the property removed include;

  • A green Sofa;
  • 2 black Sofas
  • 5 swivel chairs;
  • 5 office chairs;
  • LG TV;
  • 5-piece computer set

It’s pretty surprising that NetOne is failing to pay rentals when the network seemed to have been the biggest beneficiary of the COVID-19 pandemic. At a time when their rivals were losing subscribers on both the mobile network and mobile money front, NetOne was surging.

advertisement

EcoCash (the industry leader) and Telecash lost 7.6% and 34% of their subscribers respectively.  During the same period, OneMoney gained 60% mobile money subscribers – 337 708. Econet and Telecel lost 8.4% and 12.2% of their subscribers whilst NetOne lost just 0.5%.

On top of all this NetOne market share of mobile data and internet traffic grew by 10% to reach 38.1% whilst Econet (7%) and Telecel (3.4%) declined again. All this to say, one would expect that NetOne wasn’t necessarily the biggest affected Telco.

A closer look at the data however suggests that mobile network operators took a huge hit in terms of operating costs vs revenues. The mobile networks (collectively) rose by 45.8% but because of operating costs POTRAZ reports that the telcos lost “operating costs inclusive of foreign currency losses grew by 217.7%”.

Whilst this is only speculation, it could be one of the big reasons why NetOne has been facing issues. Others have speculated that the failure to pay is due to the fact that NetOne has been in a long court battle with suspended CEO Lazarus Muchenje for the better part of 2 years. It’s not clear how much NetOne has dedicated to legal fees during this period so it’s hard to know just how accurate those claims are.

The government generally has a track record of raking up debts as TelOne will testify and that is another likely reason why NetOne (which is government-owned) is in the mess they are in now. Or maybe it’s all 3 reasons. Who knows!?

Update: NetOne’s spokesperson denied that the incident occurred, saying, “Have you been to our Sam Levy shop? It’s open for customers and fully operational. Even over the weekend it was open”.


Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, chat with us using the chat feature at the bottom right of this screen

View Comments

  • Not cool at all.

    Cancel reply

    Leave a Reply

    Your email address will not be published.

Leave a Reply

Your email address will not be published.

Published by
Farai Mudzingwa

Recent Posts

Standard Chartered responds on the matter of the 2% Tax collections

Standard Chartered Zimbabwe has responded to our enquiry about the two years woreth of 2%…

December 1, 2020

Standard Chartered asking customers to pay 2 YEARS of the 2% Tax in 3 months

Standard Chartered Bank has notified it customers that it will be collecting two years worth…

December 1, 2020

Financial Clearing Bureau is now offering tenant vetting services

The Financial Clearing Bureau is now offering tenant vetting services to property managers, owners and…

December 1, 2020

Windows is now 35: Here are my first memories. What are yours?

Windows is now 35, here's a trip down memory lane. This doesn't have to be…

December 1, 2020

Standard Chartered and its unconventional route to going digital

Standard Chartered didn't do things in the way many expected when they went digital. In…

November 30, 2020

You can now redeem your own EcoCash Rewards points

EcoCash has finally delivered because you can finally redeem your own EcoCash Rewards points.

November 30, 2020