Chinamasa tells TelOne to diversify to boost revenue

She bemoaned legacy debts amounting to $348 million as at the end of last year, which she said continued to impact negatively on the business.

The telco has in the last few years emerged as one of the most profitable parastatals, not relying on government bailouts.

TelOne recorded a net profit of $12.8 million for the full year ended December 2014, which however slumped to $5.8 million last year.

In response, Chinamasa said TelOne must widen its revenue streams to boost income.

“My interest in state enterprises in the telecommunications business is that they should be cash cows and should contribute significantly to government revenue,” he said.

“Your business is too heavily dependent on voice and you should make significant progress into the internet business.”

Chinamasa lauded TelOne for the salary cut and bonus freeze, urging government and other private sector companies to take a cue from the state owned firm.

“Cutting salaries by 15 percent needs to be emulated not only in the private sector but in government. It was a very courageous and brave decision to align employment costs to the operating environment.”

He said government was still looking at ways to address legacy debts, a problem that most parastatals were battling.- The Source

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