MTN’s Bet On Mobile Data Is Starting To Pay Off

To ensure it retains and attract new customers, MTN continues to invest in its networks and reported capital expenditure to the end of the September 2018 was R16,4 billion.

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MTN
MTN Connecting the unconnected

Eighteen months ago, MTN new CEO Rob Shuter hatched a plan to win more mobile data and digital services, customers.

The operator’s plan was to rearrange itself and took advantage of opportunities offered by mobile data and digital services in its 22 markets.

At the time skeptics believed that Shuter couldn’t pull this off while the company was still faced with a bigger task to fix Nigeria after a scandal that led to his predecessor Sifiso Dabengwa resigning.

Yet MTN is positioning itself well in the tough world of mobile data provision and fast-paced mobile payments industry, where innovative FinTech startups are snapping customers daily.

The mobile phone operator is signing up more data customers, while it is losing voice subscribers in its home market of South Africa.

As a result, MTN has formalised its mobile internet plan in Africa and is known as “CHASE” Strategy. The “CHASE” program has five pillars to improve coverage, make handsets affordable, affordability of data services, bundling services and digital literacy.

In the third quarter, MTN added 5 million new data customers, pushing its total data users to 74.2 million.

The operator added 2,5 million voice users to 225,4 million subscribers. MTN’s outgoing voice revenue increased by 5,2% and data revenue rose by 23,9%.

The company said higher digital revenue was led by robust growth in Mobile Money services, which added 1.7 million new customers to 25,8 million.

“We made good progress on our key growth drivers of data and digital services,” Shuter said in a statement on Monday.

The company is really making great strides in sweating its big growth engines of data and digital services as it offset declines in voice calls.

To ensure it retains and attract new customers, MTN continues to invest in its networks and reported capital expenditure to the end of the September 2018 was R16,4 billion.

“We continue to focus on operational improvements across our business and continue to develop our digital businesses,” said Shuter.

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