MTN president and CEO Phuthuma Nhleko has described suggestions that India’s Bharti Airtel poses a big threat to the JSE-listed telecommunications group’s interests in Africa as “exaggeration and oversimplification”. Analysts this week raised concerns that Bharti, which recently acquired Zain’s African assets, could start a price war with MTN in several key markets, including Nigeria.
MTN SA plans to build a third-generation (3G) mobile network to offer wireless broadband to consumers in outlying areas. It will build the 3G network at 900MHz. TechCentral has learnt that MTN expects significant growth in demand for broadband services outside SA’s cities over the next few years and so is keen to boost its 3G coverage in these areas.
Telecommunications group MTN faces tougher times in the 20 territories in which it operates outside SA as regulators across Africa and the Middle East begin to flex their muscles. Outgoing group president and CEO Phuthuma Nhleko says operators across the region are facing tougher regulations.
MTN SA appears to have put the worst of its troubles, including its damaging billing-system problems, behind it and has gained market share in the past six months on the back of a jump in prepaid subscribers. Data revenues have leapt higher as demand for broadband Internet access continues to grow and the group has revised its full-year SA subscriber expectations sharply upwards on the back of a strong first-half performance.
The board of Africa’s largest mobile phone operator, MTN, should be in a position to announce the name of the group’s new CEO “within the next month or two”. That’s the word from outgoing CEO Phuthuma Nhleko, who was speaking during question time at the presentation of the group’s interim financial results in Johannesburg on Thursday.
Phuthuma Nhleko, group president and CEO of JSE-listed emerging markets telecommunications group MTN, has not completely given up on the idea of concluding another big acquisition. “Though we realise there are far fewer opportunities out there, we cannot afford to be inactive because the terrain is changing all the time,” Nhleko told analysts at the group’s interim results presentation in Johannesburg on Thursday.
The strong rand has taken its toll on MTN, Africa’s largest mobile operator MTN. In the six months to 30 June, the group’s revenue has fallen 2,2% to R56bn. However, revenue would have been 12%, or R8,2bn, higher than reported if the rand had not been as strong.
A plan by the Independent Communications Authority of SA (Icasa) to cut wholesale call termination rates may be delayed until next year, parties close to the process say. The rates, which were supposed to be cut last month as a first step on a two-year glide path down, are the fees the operators charge each other to carry calls onto their networks.
As MTN’s outgoing president and CEO Phuthuma Nhleko prepares to present his final interim results set on Thursday, analysts are hoping the group’s board will announce his successor at the same time. At the beginning of March, MTN made the surprise announcement that Nhleko had decided to step down and would leave the group by March next year.
SA’s cellular communications market is about to get a big shake-up as two players, one new, Telkom Mobile, and one reinvigorated, Cell C, get ready to go toe to toe with each other and incumbents MTN and Vodacom. SA’s smallest mobile operator, Cell C, has never had an easy time of it. Launched a decade ago after a particularly troubled birth, the operator has faced an uphill battle against dominant incumbents MTN and Vodacom.
