Barely a month after it was announced that Econet Wireless Global had raised US $150 million, we’re picking up that the global telecoms group is raising a similar figure as a loan and that this time it’s for the expansion of Liquid Telecom’s network across the continent. According to a post on Global Capital Liquid Telecom is looking to get a US $150 million loan in a deal fully underwritten by Standard Chartered.
With well over 17,000 km of terrestrial fibre on the continent (a figure from last year) Liquid Telecom has been aggressively expanding its fibre on the continent both backbone fibre and last mile (into homes). In Zimbabwe for example, in just a couple of years, the company has installed last mile fibre that’s currently available to 20,000 homes in Harare.
In May this year Liquid CEO, Nic Rudnick, revealed that their fibre expansion efforts would see them burn about $200 million over a period of a year and a half. The company has also expanding its satellite infrastructure to cater for remote areas where fibre is not the feasible connectivity option.
Needing to raise more money just goes to show how committed the company is in investing in building something that’s not going to make it any money in the short term (even medium term we think). Now if all of us on our dear continent could be this long term minded!
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11 comments
ahh vanhu vakarongeka ava
They are not organised, they don’t have broadband for domestic use in Marondera, Rusape, Mutare, Masvingo, Kwekwe, Gweru etc let alone in Harare and Bulawayo the cost is still high with all that fibre spanning Zimbabwe 🙁 :-(:-(
You need to appreciate the magnitude of the task ahead of Liquid. Zimbabwe is large country and the houses are far apart and most citizens have very very little disposable incomes. Remember this still remains a profit making company not a state enterprise like Telone. Therefore they have to balance between their network development and returning something to the shareholder.
Considering that most fibre runs through the urban centres (Marondera, Rusape, Mutare, Masvingo, Kwekwe, Gweru etc) but there is no broadband service in those areas. I am not talking about remote growth points in the middle of nowhere. At least a combination of fibre and wi-max or wifi hot spots in the CBD of these places should have been in place by now and i am sure its still a profitable proposition for Liquid.
Thats wr u are wrong Liquid has WiMax in almost all of these areas remember Liquid bought ZOL and It ZOL is the ISP while Liquid remains the provider for large organizations
Believe me, there might be a ZOL office in some of the towns focusing on fibre to corporates but there there are NO wi-max base stations or wifi hot spots. I have been out there, disappointing!!!
I think you tried it i one deadzone, in all the areas you have mentioned i have either fibre for domestic use and at my shops,… you say the cost is high? did you know that they are offering free fibre installation to every household in harare and the entry package is 80buks for 5mbps… wimax wise they have an indoor unit on free promotion and the entry level is 50 dollars unlimited at 1mbps ….. so you say high cost at domestic? Lets appreciate whats good and research before shooting down good things
I am not disputing free fibre installation or the free wimax in door unit in harare or bulawayo, but the service aint there for domestic users in the other towns.
I see this as a future expansion to stay ahead of the pack which l would say well done econet in following internationally recognised standards.
Econet is a private company which do business to make profit. Wether they have point of present (pop) or not is determined by the amount of money they will make from such installation.
Look across other ISP like Telone, l bet if it was according to there way they would have econet banned for leading the light.
Given the conditions and environment econet is operating in, all l can say is well done.
By the way, did Telecel managed to pay for there licence yet! Food for thought.
IN Harare no fibre in high density areas and southern medium/low density areas like southerton, lochnivar, parktown, ardbenie, hatfield, prospect, main way meadow, waterfalls, houghton park, highfields, glen norah, budiriro, kuwadzana never mind chi town.
All these free fibre equipment promotions are for cbd and northen surburbs, shame, shame, shame.
Tired of WIMAX want fibre.