MTN broadband network push
MTN recently announced enhancements to its mobile broadband service which includes TopUp data packages, the ability to load multiple data bundles, an extended data carry-over period and a new 3GB data package. These enhancements were welcomed by consumers and give a strong indication that MTN is increasingly focused on growing its broadband market share.
The need for a fixed line network
To compete effectively against other broadband providers such as Vodacom, Telkom, iBurst and Neotel a well established broadband network is a key component. While MTN, Vodacom and Cell C have well established radio networks, they do not have their own core fibre backbone networks.
Previously a wireless access network was adequate for a cellular provider such as MTN to serve its voice clients, but with increased network traffic and bandwidth demand, the high transmission costs paid to Telkom, long waiting times for transmission links and downtime because of transmission network downtime, forced MTN to start investing in its own fibre network.
With a 70% year-on-year growth in data traffic on MTN’s network, and a potential 100% growth in data traffic in 2009, MTN has little choice in starting to self-provide to serve its increasing transmission needs.
According to MTN CTO Sameer Dave, the cellular provider has thousands of outstanding orders from Telkom for transmissions links. Another growing problem is MTN network downtime associated with the Telkom services. Dave pointed out that more than 45% of all faults on the MTN network were caused by Telkom-related issues.
According to Dave these aspects of network quality were beyond MTN’s control, despite its efforts to mitigate the risks, and that self-provisioning is expected to alleviate some of these issues.
Fixed line progress
MTN is making steady progress on both its Gauteng Metro Fibre network and its National Long-haul Fibre network, which will be developed in partnership with Neotel and Vodacom.
According to Dave 135km of the Gauteng Metro Fibre network has been completed and the planned light up of this network is in September this year. This network is expected to provide MTN with significantly more bandwidth capacity in the Gauteng region and enable the company to provide a much wider range of services to corporate customers.
Building of the MTN/Neotel/Vodacom National Long-haul Fibre network is expected to kick off in April with the first leg connecting Johannesburg and Durban. This leg will be used partly to carry bandwidth from the SEACOM submarine cable which is expected to become operational in June.
MTN will serve its international bandwidth requirements through various submarine cable systems including Sat3-Safe and EASSy – in which it is a shareholder. MTN said that it is confident that it will have both EASSy and Seacom connections by September 2010.
Radio network
MTN continues to invest heavily in its wireless network. In 2008 MTN rolled out 483 new 2G sites and 419 new 3G sites, bringing the total number of MTN base stations in South Africa to over 7 700.
Of the 7 700 towers, 1700 are 3G/HSPA-enabled while 400 of the 3G/HSPA towers are 3.6Mbps HSDPA-enabled. Good news for MTN subscribers looking for more speed is that over one hundred of MTN’s 3G/HSPA sites are now serving downlink speeds of 7.2Mbps. MTN’s full broadband network is HSUPA-enabled.
MTN pointed out that they now cover 38.2% of the South African population with their 3G/HSDPA network, and are planning to significantly extend this coverage during 2009.
During 2008 MTN SA invested R R4.6billion in its network, and will invest a further R 4.5million in 2009.
MTN network investment – give your views
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