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Zimbabwe’s TelOne embarks on $300mn debt collection campaign

Zimbabwe’s TelOne embarks on $300mn debt collection campaign
Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
26 Aug 2013

Zimbabwe's state-owned fixed line operator, TelOne, launched a door-to-door debt collection campaign last week to recover over '$300 million' owed by its customers.

It has been reported that the telco engaged with its credit control department, which manages debt and collection of outstanding debts from clients, in a bid to recover the money.

According to TelOne's chief executive officer, Chipo Mtasa, the company launched the campaign to force clients to settle outstanding amounts.

Mtasa announced that TelOne's credit control team were set to conduct client premises visits from 20-22 August to all customers with outstanding telecommunications services bills.

"The debt collection campaign is a nationwide campaign aimed at bolstering efforts by the credit control department. We are aiming at recovering $50 million from debtors during the next quarter," Mtasa was quoted in Zimbabwe’s The Standard newspaper.

"This will help the company with the much-needed working capital to fund network expansion projects that will see TelOne deliver more products and services," Mtasa said about the repayment plans.

Mtasa advised TelOne clients to visit the company to negotiate or arrange for an acceptable payment plan to settle outstanding bills or face legal actions.

TelOne has also developed a stop order arrangement with the Public Service Commission to allow its customers to settle their telephone debts.

Some TelOne customers, however, have queried the amounts they are reported to owe the telecoms company, it was reported.

TelOne’s debt collection attempts, though, come as the telco struggles to keep afloat in a diminishing fixed line market.

Fixed line subscriber numbers in Zimbabwe have fallen from 325,000 to 301 650, finance minister, according to statistics from the Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ).

Increased competition from mobile operators and companies offering Voice over Internet Protocol (VoIP) telephony services are among reasons for the declining subscriber numbers.

At the end of 2012, TelOne had 325,000 active subscribers, registering another decline from 373 000 active subscribers during the third quarter period 2012.

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