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TelOne suffers US$300 000 potential revenue loss

08 Jul, 2022 - 00:07 0 Views
TelOne suffers US$300 000 potential revenue loss Countrywide, incidents of vandalism of the TelOne telecommunications infrastructure have been on an increase with vandals mostly targeting copper installations that currently make up more than 60 percent of the network.

eBusiness Weekly

Michael Tome

TelOne says it recorded a US$293 000 potential revenue loss in the half-year to June 2022 stemming from country-wide incidents of vandalism to network infrastructure.

The figure represents a 64 percent surge in value lost due to sabotage in comparison to the first half of 2021.

Resultantly the fixed network operator says it lost network valued at US$362,460, a 15 percent increase when compared to the same period last year.

TelOne in particular has been a huge victim of vandalism as copper heist persists given that copper still consists 60 percent of the telecoms company’s network infrastructure.

The acts of infrastructure vandalism and theft have been drawing back telecommunications sector lately, mainly leading to business loss due to voice and internet service disruptions, prejudicing the company’s customers, and ruining of the firm’s reputation in the process.

Mobile Network Operators encompassing NetOne, Econet and Telecel have also been facing operational challenges owing to immense defacement of towers and theft of batteries at base stations across the country.

According to TelOne, 29 000 customers were affected by vandalism-induced downtime in the course of the half-year period which is a 74 percent increase in the number of customers affected compared to last year.

“Countrywide, incidents of vandalism of the TelOne telecommunications infrastructure have been on an increase with vandals mostly targeting copper installations that currently make up more than 60 percent of the network.

“This five-year-old problem has put the business under threat, with at least US$1,5 million having been recorded in lost revenue and network elements for the period ended 31 December 2021,” said TelOne’s Head of corporate communications Melody Harry.

In the period there was an 18 percent increase in incidents of live network vandalism compared to a similar period in 2021 as 196 cases were recorded.

Critically, TelOne incurs huge costs in the form of replacement costs and funds injected to curb the vandalism, with estimated revenue losses averaging US$1 million annually.

In an interview, ICT expert Rungano Chihonde indicated that; “The telecoms company need to speed up and invest more in the replacement of copper with fibre, which is less prone to theft and vandalism.”
TelOne, however, hinted at endorsing policies that will fight network equipment vandalism through measures like improving security systems at sites, deepening ties with the Anti-Vandalism Task Force.
It also intends to apply awareness campaigns on its internal initiatives including schemes that reward the public for giving information that leads to the identification and arrest of suspects.

Harry indicated that in the half-year period, a total of 28 vandals have been arrested compared to 23 arrests that were made in the first six months of 2021.

Eight of the suspects have since been sentenced to the mandatory 10-year jail term by the courts.
Previously, convicted vandals were sentenced to community service.

She indicated that TelOne anticipates a rise in conviction rates once the Copper Amendment Bill gets presidential assent in the second half of 2022.

The regulation seeks to have a minimum of 30 years imprisonment for convicted copper thieves, among other requirements.

The legislative piece sailed through the National Assembly last month.

Although costly, MNO’s have since firmed security at their base stations to ensure customers do not continue to suffer due to vandalism, robberies, and assault of security personnel manning the sites.

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