Netone Biography

Background

NetOne was established as a special business unit by the Posts and Telecommunications Corporation (PTC) for the provision of mobile telecommunications services. The company officially launched its cellular service in September 1996 during the World Solar Summit held in Harare. At its inception, NetOne released an initial 500 lines to the public.

The network's geographic footprint expanded the following year, with services extending to Bulawayo in April 1997 to coincide with the International Trade Fair. By the end of 1997, the company supported 20,000 subscribers across Zimbabwe, and in 1998, it introduced prepaid cellular services to the market.

Corporate Restructuring and Regulation

A significant shift in NetOne's corporate structure occurred in the year 2000 when its parent organization, the PTC, was unbundled. This restructuring led to the formation of three independent successor entities: NetOne Cellular (Private) Limited, TelOne (Private) Limited, and ZIMPOST.

Today, NetOne is registered as a limited liability company under the Companies and Other Business Entities Act. Its operations are regulated and licensed by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ).

Services and Market Position

NetOne provides a variety of telecommunications products, including fundamental voice and broadband internet services. The company has diversified its portfolio over the years to include:

• Mobile Financial Services: The company launched its mobile money platform, OneWallet, in 2010.
• Vehicle Tracking: A GPS-based system designed for fleet management and vehicle recovery.
• Value-Added Services: These include short messaging services (SMS), emergency airtime credit facilities, and international roaming.

Despite entering the market as the pioneer mobile network operator in Zimbabwe, NetOne has historically faced challenges in maintaining the largest subscriber base relative to competitors who entered the market later. However, the company remains a major player in the telecommunications sector. By 2021, NetOne had recorded a subscriber base of 4,472,592, positioning it as the second-largest cellular company in the country at that time.

Corporate Governance and Controversies

Throughout its operational history, NetOne has encountered administrative and governance challenges. In 2013, the company was the subject of public scrutiny following reports of financial mismanagement. Investigations alleged that the company lost several million dollars due to the flouting of tender procedures, fraud, and the misappropriation of income derived from airtime sales.

These allegations largely centered on top management executives, including former Managing Director Reward Kangai, who were accused of participating in unauthorized business practices and utilizing company resources including airtime vouchers and company loans, for personal expenditures. Management denied some of these allegations, citing that expenditures such as educational fees were covered under approved company loan structures.