MTN goes big on network growth
Telecommunications operator MTN Group on Thursday reported strong financial results, including a 33% increase in adjusted headline earnings per share to 904.4c for the year ended December 2008.
MTN South Africa performed well despite challenging economic conditions. Its overall subscribers increased by 16% to 17.2 million, while MTN`s market share remained stable at 36%.
Postpaid subscribers grew by 10% to 2.8 million. According to MTN this growth was mainly driven by the launch of the MTN Anytime value proposition in September 2008, which attracted more than 259,000 subscribers.
Prepaid subscribers increased by 17% to 14.4 million, partly due to the success of MTN Zone, which became the most successful MTN pay-as-you-go price plan ever launched. MTN Zone attracted 6.6 million subscribers in the 11 months after launch in February 2008.
Big network investment
MTN said that investment in infrastructure and distribution was a major focus of 2008, with nearly R4.9 billion invested in the period. This is up from R2.8 billion the previous year.
“The key objectives as regards the network were to improve capacity, quality and coverage; modernise the network and make it more efficient; stimulate and support the development and launch of new products,” the company said.
According to MTN there were 483 new 2G base transceiver stations (BTSs) and 419 new 3G BTSs rolled out, bringing the total to more than 7,700.
“Considerable progress was also made in providing additional capacity to both the circuit switch (voice) and packet switch (data) core network,” said MTN.
The roll out of the fibre optic metropolitan network in the high-traffic zone of Gauteng commenced during 2008. This forms part of a more extensive fibre network rollout plan by the cellular operator.
“Infrastructure sharing remains a focus, and during the year, an agreement was concluded to build, along with two other operators [Neotel and Vodacom], a 5,000 km national fibre optic network to enhance network coverage and quality. Construction starts in the first half of 2009.”
MTN Acquisitions during 2008
MTN South Africa increased its branded distribution presence by purchasing the remaining 49% of retailer Cell Place and concluding the purchase of the remaining 51% stake in i-Talk.
MTN has further reached an agreement with New Clicks to buy up to 17 Musica retail outlets and release space in six other Musica stores.
MTN acquired Verizon Business effective 28 February 2009. Verizon Business South Africa currently has a market share of 18% of the data market, which together with MTN South Africa`s existing ISP, brings the new combined companies market share to approximately 23%. “This acquisition jump starts MTN South Africa`s business in this segment of the market,” said MTN.
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