MTN is going through the roughest period in its 22 years as a mobile network conglomerate. Massive disconnection of unregistered phone lines, unconducive operating environments and depressed economies have reduced average revenue per use (ARPU) in key markets like Nigeria, South Africa and few others.
The Nigerian sim card fine on MTN Nigeria, which was reduced to N330 billion after much negotiation among other regulatory and operations challenges mentioned above impacted negatively on the group’s bottom line with a dip in profit albeit for the first time.
The operator said “financial performance for the six months ended June 30, 2016 reflects the confluence of a number of material issues, which created the “perfect storm”. We have made strides towards resolving these challenges although many of these factors fall outside of its control.” The good news however, is that MTN is coming out of the storm.
MTN is investing in infrastructure rollouts, securing telecoms and cable broadcasting spectrum licences in Nigeria. It is also diversifying into digital financial services to restore investors’ confidence as well as eyeing new revenue stream for expansion, with plan to list part of MTN Nigeria shares on the Nigerian Stock Exchange (NSE), come 2017.
Corporate Services Executive, MTN Nigeria, Amina Oyagbola, said “the company is demonstrating commitment to the ICT industry through massive investments in infrastructure and commitment to growing the country’s gross domestic product (GDP) on an ongoing basis”.
On infrastructure, MTN Nigeria is spending $716 million to expand its network nationwide. It is extending third generation (3G) technology coverage to 90 percent of Nigeria by 2017 and building fibre-network rollout in six cities in the country, which will see 3G coverage from 67.23 per cent in 2016 to about 90 per cent next year
News from Today
No comments:
Post a Comment