Zimbabwe Auditor General Mildred Chiri has expressed concern over state-owned ISP Powertel's ability to continue.

In her AG Report for 2016, Chiri said the Powertel's current liabilities exceeded its current assets by US$1.6 million. The ISP, under the Electricity Supply Authority of Zimbabwe, is reported to have incurred an operating loss of US$549 417 for the year to December 2015.

"These conditions indicate the existence of material uncertainty that may cast significant doubt about the company's ability to continue as a growing concern," reads an excerpt from the report.

Losses have been attributed to a "reduction in revenues from data and internet services on the backdrop of high fixed costs" associated with the company's operations.

Management at Powertel has responded and said it has engaged vendor financiers to enable it to expand network coverage and enhance operations.

"The company has engaged vendors in order to obtain medium term vendor assisted financing totalling $7.7 million. The funding discussions have reached an advanced stage and this would enable the company to expand its network and grow its revenue base," according to a statement by Powertel management.

The company is believed to be implementing several business-building strategies including Voice over Internet Protocol (VoIP), new product development and enhanced mobile data, and has confirmed it will implement cost containment measures "to enhance its profitability prospects".

Powertel mostly offers its internet services through CDMA and WiMax platforms. More recently the company has boosted its coverage through installation of additional base stations to compete with the likes of Liquid Telecom, TelOne and Dandemutande, among others.