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Econet Wireless merges Burundian subsidiary

15-07-2015 | Global Updates
Econet Wireless Group completed the merger of its Burundian subsidiary with that of VimpelCom, U-Com Leo, consisting of Econet Wireless and U-Com Leo, is called Econet Leo, Agence Ecofin reported.

Econet Wireless Group, belonging to Zimbabwean businessman Strive Masiyiwa, has completed the merger of its Burundian subsidiary with that of VimpelCom, U-Com Leo, bought as the same time as the Central African subsidiary in October 2014 for USD 65 million. The new operator, consisting of Econet Wireless and U-Com Leo, is called Econet Leo, Agence Ecofin reported.

Econet Wireless Group CEO, Craig Fitzgeraldannounced the merger between his Burundian subsidiary with that of VimpelCom (Image source: Techzim.co.zw)

It has 2.6 million customers and 242 direct employees. In a market with competitors like Viettel, Smart and Tempo Africell, who have clearly expressed their interest in becoming leader, Econet Wireless thought it wise to take over U-Com Leo's network and customers to expand its network coverage and increase its client base. This strategy has allowed the company to take the leadership of the Burundian telecommunications market and spare itself a long battle to win over new clients and without spending a fortune to increase network coverage.

However, not everything seems in place from a technical standpoint. Some subscribers have complained of numerous inconveniences, particularly the high price for internet access and premature expiry of data packages. The free hotline 611 does not work any more.

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