Skip to main content

The case study of Powertel Communications Zimbabwe


HISTORY

      PowerTel Communications (Pvt) Ltd is a subsidiary of ZESA Holdings. PowerTel was licensed as a data services operator in 2004 and in 2009 the scope of its license was upgraded to encompass Internet Access Provision and Cross Border interconnection with regional operators. The registered office of PowerTel (Head Quarters) is located at 10th Floor Kopje Plaza, Number 1 Jason Moyo Avenue, Harare, Zimbabwe, a second office is located in Bulawayo at Fidelity life centre. The company’s services are present in Gweru, Kadoma, Kwekwe, Chinhoyi, Mutare and Masvingo.

STAFFING LEVELS

      Powertel communications (Pvt) limited has a total of 110 employees on its payroll national wide. Powertel Harare branch has a total of 91 employees, Powertel Bulawayo has a total of 19 employees and other subsidiaries located in Gweru, Masvingo, Kadoma, Kwekwe, Chinhoyi and Mutare, use ZETDC employees.
                                      
NATURE OF BUSINESS

      PowerTel service is classified according to the pattern of delivery, theirs is a continuous basis. PowerTel Communications (Pvt) Ltd is a Telecommunications company and currently provides the following products and services: Carrier, Virtual Private Network (VPN), Mobile Internet, Internet Bandwidth, and Mobile and Fixed Voice over Internet Protocols (VoIP) services. The services are offered over OPGW backbone network and a combination of optic fibre and wireless last mile access. The OPGW backbone network spans the following routes: Harare to Plumtree via Kadoma, Kwekwe and Gweru; and Harare to Mutare via Marondera and Rusape.
      The OPGW backbone network is interconnected regionally to Botswana and Mozambique. The mobile internet and mobile VoIP services are offered over a Code Division Multiple Access (CDMA) network and the business plan covers the works involved in expansion of both the CDMA wireless network and the optic fibre network. The organization is fully licensed by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) to provide data communication services over a public data network through the use of fibre optic cable, wireless and power line communications technologies.
      The license requires Powertel to operate national and international data services through an interconnection agreement with licensed gateway operators. Soon after its incorporation Powertel had been a private company under the Companies Act (Chapter 24:03).
      ZESA Holdings, its parent company, being the power utility company in Zimbabwe which owns a network of power-lines and power equipment across the country was therefore in a better position to run an optical fibre communication network than any other company in Zimbabwe. Thus the capacity of the fibre optic was so immense that it had to be commercialized.

COMPETITORS

      Powertel in the ICT industry provides fibre optic connectivity (Internet Access Provider) in Zimbabwe, competitors are posing a great threat through the offering of substitutes. Powertel competitors include YoAfrica, Liquid, Econet, Africom, Africa Online, Telone Telecel and Netone. Some of Powertel competitors on the other side being customers for example Econet is a customer for fibre connectivity whilst a competitor for mobile internet.

PHYSICAL ENVIRONMENT
      It takes into account the tangible aspects of the service that is the appearance of the employees, equipment in the Powertel shop. The shop is painted in its current brand colors which are red, blue and white. The front office consists of customer service personnel whilst the back office consists of the technical team incharge of the network maintenance and attending to customers’ faulty modems.The ambience is conducive for customers because the shop is supported by an air conditioner and three customer services desks with friendly personnel who attend for customer enquiries and queries. The customers services desk have catalogues and brochures that explain clearly all PowerTel products, making it easy for customer to be informed whilst they are in the queue. They are banners and posters, in PowerTel brand colours, that decorate the shop.
POWERTEL PRODUCTS are explained below:
·         Virtual Private Network (VPN): Metro link of capacity 64Kbps to 10Mbps bandwidth within the city/town and intercity links with capacity from 64K to multiples of 1 Mbps
·         Carrier: Inter-city n x E1 bandwidth, and multiples of STM-1
·         Mobile internet access
·         Internet Bandwidth retailing (submarine cable connection)
·         Fixed and Mobile VOIP
The above products are supplied locally in Zimbabwe in areas where we have network.
MOBILE INTERNET (Power connect)This is CDMA based wireless internet access which is divided into a narrow band (CDMA 1X) and broadband (CDMA EVDO)users.
      It is a wireless modem that does not need a telephone line to connect to the internet. Just inserting a SIM card into a modem enables one to surf the internet wirelessly. This type of wireless service uses the Code Division Multiple Access (CDMA) System hence widely termed CDMA.
      The mobile internet was rebranded to Power connect so as to enhance better service terminology among customers through brand advertisement. This was due to the fact that some customers name the service as CDMA whilst other use mobile internet and 3G.The 3G name was acting as a missing opportunity to Powertel since this service would be ranked the same with that of competitors’ like Econet’s 3G of which their service have a speed of 50 percent less as compared to Power connects’ 3G.
PowerTel has two types of modems 1:the power connect ZTE 2: the 3G EVDO
Power connect ZTE-Modem -Some of the ZTE modems uses SIM cards whereby the SIM card is inserted into a ZTE modem, whilst the other is used without a SIM card. This service was being sold as a complete package meaning with both the modem and the SIM card. The speed of this service is on a shared platform meaning that it depends on the number of mobile internet customers connected at that time.
    The maximum speed of this platform is up to 2.4 Megabytes per second (mbps).
EVDO -this type of mobile internet use SIM cards whereby the SIM card is inserted into an EVDO modem. 3G EVDO have a speed up to 3.1 MBPS downlink and 1.8 MBPS uplink whilst the ZTE had speed up to 2.4 Mbps. The speed of the mobile internet is on a shared platform meaning that the actual speed is determined by the number of users connected to the internet at that time .The ZTE was charged at $45 and $50 per month whilst 3G EVDO is at $35 and $50 per month. Powertel is currently removing the terminology of 3G on this service to its brand Power connect.
3G WIRELESS ROUTER-
 VPN this business is made up of Metro links, intercity links and logical links. Metro links with bandwidth ranging from 64kbps to 10mbps within cities over optic fibre cable. The intercity link ranges from 64kbps to E1 from one city to another over optic cable. It allows companies with branches spread country wide to network their ICT resources as if they are in the same building.
 CARRIER BUSINESS
      The company’s carrier business is mainly composed of links ranging from E1 to multiples of STM-1 over SDH equipment with this product; the client can lease bandwidth capacity on our fibre backbone between cities
INTERNET BANDWIDTH
     The company distributes internet bandwidth to ISPS and large cooperates. The service is provided by interconnecting the company’s optic fibre network to the submarine cables through licensed operators in neighboring countries.
 VOIP the Company’s newest telephony service delivers voice services and related value added services to the customer through internet protocol technology.


METHOD OF PAYMENT
      Individual customers using mobile internet pay in the PowerTel shops in Harare or Bulawayo using cash. Customers in areas like Gweru, Masvingo, Kadoma, Kwekwe, Chinhoyi and Mutare, make bank deposits at either ZB bank or Stanbic bank. The use of Real Time Gross Settlement (RTGS).
     Discounts to new customers on fibre optic connection mostly on the installation costs which is the main difficult stage to these customers is offered. This will enable them to strive to be connected and with better initial payment terms. Flexible initial payments are granted to new fibre optic customers

MAKING CONTACT WITH NEW CUSTOMERS
      Powertel communications (Pvt) limited contacts potential customers in various ways which include advertising in the media, sales promotions, personal selling, trade exhibitions and public relations through press releases.
      Advertising in the media,  it can be used to build up a long-term image for a product and can reach geographically dispersed buyers efficiently. Powertel uses newspapers like the chronicle, Sunday news and the herald to target potential customers, for example when advertising for the modem, they used various newspapers. The social media is also used, these include advertising on the website, using its Facebook page to inform customers on the new products and techzim.

      Personal selling-is normally done by sales agents and marketing executives. They target corporates and individuals using brochures and catalogues, to inform them about powertel’s products.
      Trade exhibition-powertel engages in trade shows like the Harare Agricultural show, ZITF, Midlands show, Masvingo show and the Gwanda show.this platforms allows powertel to meet with new customers.
      Public relations and publicity. The appeal of public relations and publicity is based on high credibility (news stories and features are more authentic and credible than ads),(ability to catch buyers off guard (reach prospects who prefer to avoid salespeople and advertisements), and dramatization (the potential for dramatizing a company or product).

      Direct marketing, most forms of direct marketing are done at PowerTel, that is, direct mail, telemarketing and Internet Marketing. These are  nonpublic (the message is normally addressed to a specific person), customized (the message can be prepared to appeal to the addressed individual), up-to-date (a message can be prepared very quickly); and  interactive (the message can be changed depending on the person’s response).

RETAINING EXISTING CUSTOMERS
      PowerTel`s main aim is to keep customers satisfied. To achieve this , they have a 24 hour call centre responsible for nurturing customers. Customers’ services personnel in various distribution centres compile a database and send it to the call centre in Harare. This database consists of the customer names, phone numbers, physical address and e-mail address.
      Retaining customers is far more profitable for Powertel than losing them and searching for new customers. They send direct mail and e-mails to customers or send their salespeople to make follow ups on customers who are already using Powertel services.
      Frequency marketing on loyal customers is done through  programs that reward customers with promotions, for example, instead of charging $50 per month for mobile users, loyal customers may pay $35 or $40 per month for a given period of time when they is a promotion.Retaining existing customers results attract new customers through word of mouth..

INVISIBLE ELEMENTS
      Two main products are fibre connection and mobile internet. When a new customer comes they are steps taken to make sure the customer is in the database. Mobile internet users include the use of a 3Gmodem and VOIP service.to purchase a new modem a customer completes a form which is taken to the cahier for payment and creation of account in the SAP. It is then taken back to the customer services desk for activation of the UIM card and to be added into the database.
      Fibre connection is either internet bandwidth, intercity links or metro links. To get connected a customer makes an order either by payment or an e-mail to notify that they are going to pay. With this order a job card is raised, and this is only done from the Harare office because this process is centralised. When the job card is received, it is taken to operations for the job to start and connect the customer.



PERIPHERAL SERVICES
      When a customer is not receiving their service, a team of technicians is available to assist the customer at their convenient area. In case a customers’ modem is faulty, Powertel replaces if it is still under guarantee. During the Zimbabwe International Trade Fair, Powertel offers a certain number of business tickets to loyal customers.
CUSTOMERS
      Telecommunications clients such as Africom, Utande, Yo-Africa and Africa On-Line are dealers of PowerTel’s international bandwidth whereby they buy this internet bandwidth in bulk and sell it to customers in various low bandwidths. Large corporates and individuals as well connect with PowerTel broadband.
MAIN CLIENTS’ PROFILE
COMPANY NAME
POWERTEL PRODUCT BEING USED
CONTACT PERSON
CONTACT NUMBER
DELTA CORPORATION
MOBILE INTERNET, CARRIER, VPN AND INTERNET BANDWIDTH
JOSEPH SHENJERE
0712 502 425
TURNALL FIBRE CEMENT
VPN AND INTERNET BANDWIDTH
DHLEMBEU
04/754625-31
OK ZIMBABWE
MOBILE INTERNET, 
LAZARUS MANDIZHA
0772 885 361
NUST
MOBILE INTERNET, CARRIER, VPN AND INTERNET BANDWIDTH
H TSOKODAI

263772881849
MIDLANDS STATE UNIVERSITY
MOBILE INTERNET, CARRIER, VPN AND INTERNET BANDWIDTH
LIBERTY DANDIRA
0712 446 733
LANCET LABORATORIES
VPN
EPHRAGE CHIMBARARA
0772 612 349
CBZ
VPN AND INTERNET BANDWIDTH
MWANJIRA
04-748050/70
ZB BANK
VPN AND INTERNET BANDWIDTH
ISAAC CHINYADZA
0772 768 832
PSMI
MOBILE INTERNET,  VPN AND INTERNET BANDWIDTH
COLONIEL WOYO
04-700292
ZIMPOST
VPN
AMBROSE NAVHAYA
0772 983 820
NETONE
MOBILE INTERNET, CARRIER, VPN AND INTERNET BANDWIDTH
PETER FARNET
0712 980 863
NESTLE
VPN AND INTERNET BANDWIDTH
NYASHA SACHITI
0772414449


POWERTEL COMMUNICATIONS’ MAIN CLIENTS
      Different marketing strategies are used to different customers in relation to its field of business. Powertel have sub grouped its clients  into Telecommunication clients, Educational clients, Finance clients, Health clients, NGO clients, Transport clients, Manufacturing clients and others only to mention a few. All these clients to PowerTel Communications for the Data transmission and internet they use. The table below clearly shows the examples of different classes of Powertel clients

Client category
Approximate weight to Powertel(in term of revenue)
Telecommunication
40%
Financial sector
25%
Education
3%
Health
2%
Government
1%
NGO’s
4%
Transport
3%
Manufacturing
10%
Others
12%




 Powertel obtains much of its revenue from leasing fibre connectivity hence its main customers are on fibre optic connectivity which includes VPN, Carrier and International Bandwidth. The Powertel’s telecommunications clients are treated as an egg which is not allowed to fall on the ground .Telecommunications clients such as Africom, Utande, Yo-Africa and Africa On-Line are dealers of Powertel’s international bandwidth whereby they buy this internet bandwidth in bulk and sell it to customers in various low bandwidths.
      This actually shows that Powertel Communications is a wholesaler and the Internet service providers like he latest are retailers. An illustration is that YoAfrica can buy 30 Mbps of international bandwidth and sell it to at least 40 customers.
      Among the Powertel main clients, Non-Governmental Organisations have most of their headquarters in the large cities and towns connected to Powertel Fibre. Powertel is losing business mostly to the NGOs stations in the rural areas and small towns which require internet connectivity but there is no fibre coverage of Powertel network, such areas include Buhera, Gokwe ,Zhombe ,Zvimba-Murombedzi, Nkayi and Lupane.
      To safe guard the interest of all Powertel stakeholders, Powertel enters into legally binding agreements with its customers. Powertel has come up with a Service Level Agreement (S L A) which it signs up with all its fibre clients so as to guarantee 99.9% good service. However for CDMA Powertel does not sign any Service Level Agreement for it is a best effort product which works just like an ordinary cell phone
CONTACT PERSONNEL
      After induction, new employees are engaged on with on the job training, where experienced personnel assist the new employees to familiarise themselves with the new job. Occasionally, Powertel conducts workshops which train them on quality service improvement. The managing director, frequently addresses workers on the expected service. Frontline employees are not empowered in case of a service failure the issue is directed to the Account Executive and this is done in writing, and will respond after days for service recovery.
     The most common forms of service failure are when a modem is faulty, a modem is used where they is no network or the company faces continuous days of network challenge. In such instances service is recovered by: modem replacement when the modem is faulty, cash refund when the modem was bought to be used in an area where we have no coverage like Plumtree and when the network is down for several days the customer’s account is credited with days they were not accessing the internet.
GENERAL

  “To be the preferred ICT services provider to customers in Zimbabwe, and globally.”


     “We are committed to providing world class ICT connectivity services and products that delight our customers whilst creating value for our stakeholders.”

·         Innovation
·         Teamwork
·         Integrity
·         Commitment
·         Passion for excellence
·         Purity


POWERTEL’S STRATEGIC OBJECTIVES
      Powertel’s vision is to be the preferred Telecommunication Services provider in Zimbabwe and globally. This vision is realized through implementation of its objectives, which are:
·         Building infrastructure  which is capable of providing all aspects of communication services including;
·         Digital and audio transmission
·         Circuit lease
·         Internet private line access and broadband private user access
·         Virtual Private Network (VPN) access
·         Video conferencing
·         Minimization of service provision costs in line with competition.
·         To build a stronger reputation on product lines and services in terms of quality, reliability and responsiveness
·         To gain in terms of network coverage, range of services and markets in which the company operates
·         To be in the forefront of innovative information and communication technology to add value to the customer services.
·         To put financial structures which are sustainable in both the short and long run, creating profits for reinvestment and meeting all stakeholders’ needs.
·         To have faster turnaround times in connecting customers relative to competition.
·         To achieve recognition as a leader in innovative application of information and communication technology for the benefit and convenience of the customer. customers while creating value for our stakeholders

      Service quality in a organization is a measure of the extent to which a delivered service meets the customer’s expectations. It is determined by the customer’s perception and not by the perceptions of the providers of the service. PowerTel’s customers expect superfast internet as the service quality. Therefore, PowerTel determines customer needs & wants and, then design the service to meet these requirements. Service quality is considered a critical determinant of competitiveness. Service quality can helps PowerTel to differentiate itself from other organizations and gain a competitive advantage. Superior service quality is a key to improved profitability and it is achieved through:
     Reliability:  Perform promised service dependably and accurately.  Example: receive mail at same time each day.
      Responsiveness:  Willingness to help customers promptly.  Example: avoid keeping customers waiting for no apparent reason. 
      Assurance:  Ability to convey trust and confidence.  Example: being polite and showing respect for customer.
      Empathy:  Ability to be approachable.  Example: being a good listener.
      Tangibles: Physical facilities and facilitating goods.  Example: cleanliness.     


 REFERENCES
·         Powertel communications Bulawayo. Fidelity life centre, corner 11th and fife street.
·         www.powertel.co.zw
·   Philip Kotler (1997), Marketing Management: 7th Edition, Prentice hall North Western University Kevin Lane Keller Dartmouth College
·         Philip Kotler (2000), Marketing Management: Millenium Edition, Prentice hall North Western University Kevin Lane Keller Dartmouth College

                           














                                




                                      

Comments

Popular posts from this blog

Assume you are a group public relations manager of a huge organisation which is facing serious cash flow problems and possible retrenchment due to lack of viability.

Assume you are a group public relations manager of a huge organisation which is facing serious cash flow problems and possible retrenchment due to lack of viability. You have been assigned by the board of Directors to devise a public relations communication strategy to those who will be retrenched if the situation does not improve in the next six months. Use the six point planning model to elaborate each stage of your communication strategy . [25] 16.03.19. 1.        I am a public relations manager ·          What is the role of the Public relations manager 2.        The company is facing serious cash flow problems. 3.        They is a possibility of retrenchment 4.        Devise a communication strategy for those to be retrenched. 5.        Use the six point model Definition of...

Identify one Zimbabwean exporting company of your choice and discuss its operations

Zambezi Tanners pvt ltd company changed from PT Royal Ostrindo to the now Zambezi Tanners Pvt Ltd. PT Royal used to market mainly meat and it used to export it to the United States Of America but in November 2005, the Arian Influenza antibodies were detected in Zimbabwe which called for the ban of its exports, hence the losing of its major market in the USA. The tanner then diversified to a variety of exotics thus then changed the name to the Zambezi Tanners pvt ltd. Zambezi Tanners concentrates on all leather products. They turn skin from raw into finished. They have the skins which include crocodiles, elephants, hippopotamuses and the local skins like the cows, goats and the sheep skins. The company thereby exports all the leather products. The markets they are destined to include, the United States of America, Canada, Mexico, Brazil, Italy, Denmark, Japan, South Korea, China, Hong Kong and South Africa. Zambezi Tanners Pvt Ltd uses the direct exporting. Direct exporting is a situa...