South African mobile telecommunications company MTN will invest P86 million over the next three years into expanding the range of internet services it provides through its subsidiary MTN Business Botswana. Active in the country since 2009, MTN Business Botswana operates as an Internet Services Provider which focuses on the provision of ICT services to various companies, from Small and Medium businesses (SMEs) to Large and Multinational Customers (MNCs). The company currently provides services to 85 corporate clients within the country including BoB, FNBB, Stanbic, BITC and AFA.
Speaking at a press briefing in Gaborone recently, MTN Business Botswana Finance & Administration Manager Mthulisi Malinga explained that while the company’s current focus is providing corporate clients and SMEs with connectivity services the MTN subsidiary has identified a new growth opportunity.
This opportunity entails extending the company’s services to the residential and consumer market, and has prompted it to develop a broadband service suitable for both residential and SOHO markets (Small Owner Home Owner).
MTN is a South African mobile telecommunications company operating in 24 countries in Africa, Europe and the Middle East, and boasting more than 233 million subscribers.
According to Malinga, the company is currently generating P24 million of revenue annually and management expect this figure to soar to almost P90 million by the end of 2018 if the relevant licenses are awarded by BOCRA as expected. Almost USD4 million (P43.2 million) will be invested initially and gradually decline over a three year period to USD2 million (P21.6 million) each in 2017 & 2018. Should all go according to plan, consumers can expect the new suite of residential and consumer market internet services to be available from the second half of 2016.
“The MTN Strategy is to focus on making internet and internet services available to the general populace and to apply further focus on Enterprise connectivity,” says Malinga. “Data traffic will become central to the MTN strategy to further create and maintain stakeholder interest as well as to drive sustainable growth going forward.”
MTN is a South African mobile telecommunications company operating in 24 countries in Africa, Europe and the Middle East, and boasting more than 233 million subscribers. Sifiso Dabengwa , MTN CEO since 2011, recently stepped down following a decision by the Nigerian Communications Commission (NCC) to slap MTN with a fine of USD5.2 billion (P56.16 billion), the largest such fine in mobile history by far, for its failure to disconnect all its unregistered sim cards in that country despite numerous warnings. Phuthuma Nhleko, MTN Chairman and CEO between 2002 and 2011, has taken the reins of the mobile telecommunications giant until a new CEO can be appointed.