Zimbabweans queue for mobile phone lines

The situation highlighted the fact that demand for mobile phone lines was still far from being met in a country where the mobile market penetration rate is at 10%, against an average of 40% for sub-Saharan Africa.

Econet released 50,000 pre-paid mobile lines as part of its network expansion programme that was targeted at increasing the subscriber base from 900,000 to 1.2 million. A spokesman said a further 500,000 new subscribers could be added, bringing the subscriber base to nearly 2 million or 75% of the market share, after a US$95 million cash injection last month by a major shareholder.

Analysts say there is immense pent-up demand that remains unsatisfied due to the low penetration rate, caused largely by slow growth among the country's three mobile phone networks due to a decade-old economic crisis that constrained expansion.

Orascom is reportedly in talks with South Africa's MTN for the take-over of Telecel. The entry of MTN in Zimbabwe could significantly transform the mobile market and force players to ramp up their subscriber bases due to increased competition.