Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Netflix is losing the battle for your screen time

      Netflix is losing the battle for your screen time

      16 October 2026
      Safaricom control to stay with Vodacom until appeal

      Safaricom control to stay with Vodacom until appeal

      16 October 2026
      South Africa's midday power glut is a hidden risk for wheeling deals

      South Africa’s midday power glut is a hidden risk for wheeling deals

      15 October 2026
      Why South Africa is turning its back on 'screwdriver' car plants - Parks Tau

      Why South Africa is turning its back on ‘screwdriver’ car plants

      15 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
    • World
      AI is now holding up the world economy, says IMF

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
      The AI PC is finally here. It's just very expensive - Jensen Huang, Satya Nadella

      The AI PC is finally here. It’s just very expensive

      8 October 2026
      The memory crunch is making Samsung fabulously rich

      The memory crunch is making Samsung fabulously rich

      8 October 2026
      SpaceX to borrow $40-billion to buy Nvidia chips

      SpaceX to borrow $40-billion to buy Nvidia chips

      7 October 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Hilton Tarrant » MTN’s not-so-little reputation nightmare

    MTN’s not-so-little reputation nightmare

    By Hilton Tarrant10 August 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    hilton-tarrant-180Operationally, the time-suck on executive leadership from the Nigerian fine fallout had nothing to do with its other units across Africa and the Middle East. It’s always managed to run its “OpCos” quite independently, which arguably has a few more negatives than positives. In fact, one of the goals of the “fundamental strategic review” announced on Friday is to improve “the way of work through increased coordination between different parts of the business”.

    There is no direct link between what’s happening at MTN South Africa (or any of its other units) with what’s going on at MTN Nigeria. But for perception…

    The replies to my tweet about the group’s R1,3bn bill for “professional services” to negotiate that Nigeria fine were surprising.

    On one hand, some leapt to categorising these as “bribes” either explicity or implicitly (with lines like “hope they got invoices”). This is a serious reputational problem for MTN and, I guess, comes with the territory of trading in the West African country (which it is used to).

    It must be noted that not only were these negotiations incredibly high profile, but they involved armies of lawyers in at least three countries, Nigeria, South Africa and the US. (Oh, and hiring former US attorney general Eric Holder does not come cheap!) And split that amount up across the seven months it took to deal with the fine, and suddenly it doesn’t seem as gigantic.

    Far more concerning to MTN than these fanciful claims of “bribes” is the perception that it is hiking prices in its other markets to help pay for the fine.

    Here in South Africa (but not only in this market) there’s a strange conclusion being drawn in many consumers’ minds that the Nigeria fine is to blame for the increases in contract and data prices locally both last year and this year. These have not been insignificant, with anything from a 2% to a 24% jump in the prices of the former, and 4% to 67% in the latter!

    To be fair, in some cases these prices have not increased in over a decade. But customers effectively saw prepaid price increases in April last year, post-paid ones in May 2015, and then — bizarrely — data contract price cuts this May (on the same packages it had hiked a year ago), as well as voice rate increases on its contract packages and upward adjustments to daily and rush hour prepaid bundles.

    The perception, rightly or wrongly, is that prices have increased and that MTN’s data prices (on prepaid, especially) are increasingly non-competitive.

    A 500MB one-off (30-day) data bundle on MTN costs R105 (and includes 125MB additional data, valid for five days). But the same bundles on Vodacom and Cell C cost R99. Yes, you might be getting more data in the MTN bundle but not only is this promotional (until 31 December), it’s also largely hidden in the fine print. And MTN changed (reduced) the amount of extra “giveback” data as well as the validity of this bonus data in July 2016. Customers perceive MTN to be pricier.

    MTN South Africa CEO Mteto Nyati
    MTN South Africa CEO Mteto Nyati

    Of course, this broader perception hasn’t been helped by a number of own goals scored by the local operation, many of which have roots in the management instability that has plagued it until last year’s appointment of Mteto Nyati as South African CEO.

    “Network outages in some areas” directly impacted the unit’s performance in the first six months of 2016. Service revenue was up 0,7%, with data revenue (+19%) and device sales the only two bright spots. However, the latter is coming off an artificially low base given the impact of industrial action last year. Customers (and former customers) remember this strike, too.

    The purchase of 50% of Afrihost was a costly (and unnecessary) distraction for management, and competitors have been slowly eating away at MTN’s market share in its core business (mobile telephony). Between 31 December 2015 and 30 June 2016, it lost 673 000 prepaid and 110 000 postpaid customers, while the three other networks continue to add subscribers, although amazingly, it still reports its market share at 32.3%. Those subscribers are going to be difficult to win back, and the only realistic way is going to be via price.

    Never mind that MTN has been pushing to catch up to Vodacom after years of underinvestment in its network (the very aggressive expansion meant a 14% increase in costs in the South African business in the first six months of the year).

    Perhaps the Ebitda margin of 30,1% for South Africa (from 35,6%) is a more realistic figure going forward? Strangely, MTN hasn’t changed its guidance and is still confident of adding 1,1m subscribers in South Africa this year.

    The softness in its home market, coupled with an increasingly hostile perception among customers that profits from South Africa are being used towards settling the massive Nigeria fine, will only exacerbate a difficult turnaround. This rebuilding project is going to take a little longer, still.

    • Hilton Tarrant works at immedia
    • This column was originally published on Moneyweb and is used here with permission
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Afrihost Mteto Nyati MTN MTN Nigeria MTN South Africa Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleThe best tech businesses aren’t really tech
    Next Article SA voters cast their ballots for change

    Related Posts

    Safaricom control to stay with Vodacom until appeal

    Safaricom control to stay with Vodacom until appeal

    16 October 2026
    MTN hits 10Gbit/s wireless speeds in South African 5G-Advanced trial

    MTN hits 10Gbit/s wireless speeds in South African 5G-Advanced trial

    13 October 2026
    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    Sars to pay Microsoft and IBM R2.75-billion in sole-source deals

    12 October 2026
    Company News
    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    Paratus Zambia delivers Starlink to thousands of children in Family Legacy schools

    15 October 2026
    Data sovereignty in South Africa is not an address - Ascent Technology, Johan Lamberts

    Data sovereignty in South Africa is not an address

    15 October 2026
    AI is only as good as your asset data

    AI is only as good as your asset data

    14 October 2026
    Opinion
    When a machine can choose, who does it become? Fanie van Rooyen

    When a machine can choose, who does it become?

    9 October 2026
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Netflix is losing the battle for your screen time

    Netflix is losing the battle for your screen time

    16 October 2026
    Safaricom control to stay with Vodacom until appeal

    Safaricom control to stay with Vodacom until appeal

    16 October 2026
    South Africa's midday power glut is a hidden risk for wheeling deals

    South Africa’s midday power glut is a hidden risk for wheeling deals

    15 October 2026
    Why South Africa is turning its back on 'screwdriver' car plants - Parks Tau

    Why South Africa is turning its back on ‘screwdriver’ car plants

    15 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter