This Infastructure improvent is is necessary to stay competitive in the fast evolving telecom sector.
Vodacom, another major telecom operator, is increasingly applying pressure with its “beyond mobile” expansion strategy to grow its fibre network and ISP reach, as well as its planned $2 billion acquisition deal with Maziv.
MTN South Africa is pumping R300 million ($17 million) into network infrastructure in Gauteng, the country’s most populous province. The investment is focused on acquiring new base stations, 5G rollouts, and technical enhancements across over 70 network sites.
This MTN’s strategy is all part of a larger R4.5 billion ($251 million) national rollout which will be completed in 2025. MTN expects this investment to bring improved coverage and enhanced network capacity for more businesses and communities in the region, including both rural and urban areas.
Despite this push, MTN’s service revenue growth in South Africa remains stuck in the single digits. The stagnant growth is attributed to stiff competition from players like Vodacom and Telkom, particularly in the pre-paid market. This suggests that the telecom giant is under some pressure at home. The investments could be a defensive play as MTN fights slower growth in its core domestic market.
Last month, MTN South Africa also announced R480 million ($27.1 million) on expanding and modernising its infrastructure upgrades meant to drive economic growth and improve access in another province, KwaZulu-Natal (KZN).
Despite the weakened growth outlook, South Africa remains a top-four earning market for MTN alongside Nigeria, Ghana, and Uganda. These investments in infrastructure are needed to stay competitive in the game and avoid future misses like last year when it had to exit three countries: Liberia, Guinea-Bissau and Guinea-Conakry citing financial constraints caused by inflation and currency devaluation.
