MTN subscriber base up by 3.7 percent in December quarter (Africa)
MTN Group recorded 170,573,000 subscribers at 31 March 2012. This is a 3.7 percent increase for the quarter from 164,501,000 subscribers recorded at 31 December 2011. The Group delivered a satisfactory performance notwithstanding continued high levels of competition in key markets.
Consistent with the new management structure, this commentary includes detailed analysis of each of the five larger operations (MTN South Africa, MTN Nigeria, MTN Irancell, MTN Ghana and MTN Syria) and highlights from the rest of the operations. However, a schedule of subscriber and ARPU numbers for all operations is also given.
MTN South Africa contributed 13.3 percent to Group subscribers and delivered a sound performance in a mature market. It increased its subscriber base 3.2 percent for the quarter. The postpaid segment performed well, increasing its subscriber base by 4.4 percent mainly due to attractive data propositions. The prepaid segment increased its subscriber base by 2.9 percent despite increased competition. This was attributable to competitive promotions including the continued success of MTN Zone through improved informal distribution channels. Blended ARPU declined 7.9 percent mainly due to a reduction in interconnect rates to 56 cents in March 2012 from 73 cents previously. Postpaid and prepaid ARPU decreased 6.7 percent and 8.1 percent respectively.
MTN Nigeria contributed 25.1 percent to Group subscribers and increased its subscriber base by 3.0 percent for the quarter. Net connections of 1,258,000 were negatively impacted by a nationwide strike in January and aggressive competition. Slower net connections at the beginning of the year resulted in a marginal loss of MTN’s share of the market. However, corrective measures enabled the operation to increase network capacity and improve net connections later in the quarter. No clarity has yet been provided on the deadline for SIM registration. The harmonizing of MTN Nigeria’s database of registered subscribers with the NCC database is in progress. Local currency ARPU declined by 1.1 percent for the quarter.
MTN Irancell contributed 21.6 percent to Group subscribers. On a proportional basis, reflecting MTN’s 49 percent ownership, its contribution was 11.9 percent. It continued to deliver a solid performance growing its subscriber base by 6.2 percent and increasing its share of the market for the quarter. This was mainly due to attractive value propositions including 2-in-1 SIM packs and various seasonal promotions. At the end of March, MTN Irancell recorded 213 000 WiMax customers. Local currency ARPU increased 3.7 percent due to improved network quality. The third mobile operator is expected to launch commercially in the second quarter of 2012.
MTN Ghana contributed 6.1 percent to Group subscribers, increasing its subscribers 2.3 percent for the quarter and maintaining market share in a competitive environment. This was due to attractive promotions as well as the implementation of a regional structure to better manage sales and marketing. Local currency ARPU increased by 3.4 percent mainly because of revised value propositions. The deadline for SIM registration was 1 March 2012 resulting in a disconnection of 21,237 subscribers representing 2 percent of the subscriber base. The sixth mobile operator had its commercial launch at the end of April 2012.
MTN Syria contributed 3.3 percent to Group subscribers. Its performance continued to be hampered by civil unrest in the country, which resulted in a reduction of subscriber numbers of 23,000 subscribers and a decline in local currency ARPU of 8.5 percent.
The rest of MTN’s operations contributed 30.5 percent to Group subscribers, representing an increase in users of 3.5 percent. MTN Uganda increased its subscriber base by 1.2 percent as the market slowed due to SIM registration. MTN Sudan continued to show good progress, increasing its subscriber base by 5.3 percent for the quarter attributable to attractive value propositions and improved distribution. MTN Cameroon also performed well and increased its subscriber base by 9.8 percent. This was attributable to a more aggressive informal distribution strategy and attractive value propositions. MTN Cote d’Ivoire increased its subscriber base marginally by 0.5 percent because of the removal of 200,000 non revenue generating SIM cards and lower gross connections due to SIM registration.
The Group continues to prioritise key initiatives to better manage the business as consumer trends evolve and competition intensifies. Data and related products and services continued to gain momentum. Data, including SMS, contributes 14.4 percent to revenue, driven mainly by MTN South Africa. Mobile Money has now been launched in 13 countries. At the end of March 2012, MTN had 6.2 million Mobile Money subscribers. Initiatives to optimise costs continue to be rolled out and the centralized procurement initiative is showing solid progress.
Network quality and capacity remains a key imperative for the Group. The majority of the operations continued to aggressively rollout network and achieved satisfactory progress for the quarter.
MTN to invest US$ 1 billion for network upgrade in Nigeria (Africa)
Africa based MTN Group will invest over USD 1 billion in 2012 in an attempt to improve its network service in Nigeria following the directives by the Nigerian Communications Commission (NCC) to improve its service quality.
According to reports, the operator has said that the increase in the number of subscribers has necessitated the need for an efficient service delivery. Further, sources claim that the investment will help ease out the traffic on the network thereby improving the network quality.
As per sources, the Nigerian Communications Commission had issued a warning to telecom operators MTN, Globacom and Bharti Airtel in 2011 for their poor services, asking them to improve their quality before taking on additional subscribers.
MTN Nigeria’s efficiency up by 98% with AdaptiveMobile (Nigeria)
Mobile network operator, MTN Nigeria had partnered with AdaptiveMobile, a world leader in mobile security, to protect subscribers from mobile network threats. According to reports, AdaptiveMobile, successfully completed a mobile content filtering, anti-spam and anti-virus protection project with MTN Nigeria, thus allowing the operator to safeguard its network and subscribers from unwanted mobile data through their mobile devices.
As per sources, the network protection platform offered by AdaptiveMobile, has helped MTN reduce its network load and customer complaints thereby enhancing the operator’s failing IP reputation. Further, as per industry reports, the network operator has managed to improve its efficiency and network security by as much as 98 percent after partnering with AdaptiveMobile.
Reports suggest that the network protection platform enables MTN to significantly reduce spam, cut down on customer care costs, block access to illegal sites and identify the source of many viruses. Obinna Nweje, General Manager, MTN Nigeria, has reportedly said that the roll-out of AdaptiveMobile’s Network protection Platform is enabling them to improve customer experience and achieve significant operational cost savings by protecting their network and subscribers. He added that with many operators globally, the shared nature of mobile IP addresses means that attacks from unscrupulous spammers can have a huge impact on IP address reputation and potentially result in innocent subscribers’ emails being unnecessarily blocked.
Operators foray into outsourcing
Mobile operators now days have joined the race of opening BPOs to help their customers. Last week two telecommunications operators, MTN Nigeria and Bharti Airtel trading with the brand name, Zain Nigeria signed different Business Process Outsourcing deal with some companies.
MTN tied knots with Communications Network Support Services (CNSS) to run and manage its Jos Customer Assistance Centre. Bharti Airtel entered into a strategic BPO partnership with IBM, Tech Mahindra and Spanco.
Outsourcing is being pursued as an active business strategy in the current economic scenario, since it enables a firm to focus on its core-competency area. It also releases the firm from resources and labour intensive functions, which are now performed by trained personnel at much lower costs.
The processes or activities that are being outsourced by telecommunications operators could range from customer care centres to information technology management, market research and even financial portfolio management among others.
Telecommunications operators in the country have been bedevilled with a lot of operational challenges that have hindered operators from delivery quality services. When operators in the space launched service over nine years, little did they know that their infrastructure they use to deliver services believed to be a source of joy and enhancement of the people’s socio-economic life will be object of attack by armed robbers and miscreants.
Operators have lot generators, diesel, air conditioners, live of security men at base stations among other valuables to armed robbery, which led to them conceiving the idea of outsourcing the management of base station to some infrastructure building companies, such as Helios towers, Swap Technologies, IHS among others.
Subsequently, Zain last year had signed a five year network management contract with Ericsson, that allows Ericsson manage Zain’s network operations, field operations including optimization, third-party vendor management for Zain’s GSM/WCDMA networks, and business support system.
MTN and CNSS Deal
As per MNT, the outsourcing of its Jos Customer care to CNSS is in line with the plans communicated by the company in 2009 to enhance the breadth and depth of its customer service towards increasing its capacity to respond promptly to over 35 million MTN customers.
According to Akin Braithwaite, Customer Relations Executive, MTN, their ultimate goal is to ensure a significant reduction in the waiting time for a customer to speak with a customer representative and get his issues resolved.
The customer assistance centre, more popularly known as call centre, took off on a temporary site at Rayfield, Jos in July, operating four shifts of customer care representatives in a day. It complements existing customer support infrastructure that is currently the biggest in the industry.
The 650-man customer assistance centre, installed with cutting-edge technology is being run in partnership with CNSSL Contact Centre, a Call Centre outsource company based in Nigeria and managed by Nigerians.
Gbenga Adebayo, chief executive officer, CNSSL Nigeria, a telecoms support services company and Founder of CNSSL Contact centre spoke with excitement about the expansion of the Jos call centre.
He added that the permanent site and expanded call centre should be ready by November and will employ an additional 1, 500 Nigerians. They will receive world-class customer service training provided by experts from MTN”. The ultimate recruitment plan for the centre according to him is staff strength of about 2,200 by the end of the first quarter of 2011.
The Jos call centre also demonstrates MTN’s overarching strategy to contribute to socio-economic development in Nigeria. According to Wale Goodluck, Corporate Services Executive, MTN. “It is a strategy deliberately designed to both improve the quality of customer support available to our esteemed customers and also add value to the local communities by creating employment opportunities for Nigerians.â€
The recent upheavals in Jos further underscore MTN’s commitment to impacting Nigerian society through its operations and services. While businesses and individuals were known to leave the city, MTN made a strategic decision to go into Jos metropolis and create jobs and opportunities for its residents. Currently, 70% of staff at the Jos call centre are from Plateau state with the remaining 30% made up of youths from all over Nigeria.
Bharti Airtel BPO Deal
Under the agreement Bharti Airtel, which owns and currently operates the ‘Zain’ brand in 16 countries across Africa, will outsource core customer service functions like call centres and back office as it prepares for significant growth in the region. The mobile telecommunications operator currently has over 40 million customers across its African operations and is targeting to achieve 100 million by 2013.
The selection of world class partners like IBM, Tech Mahindra and Spanco will enable Bharti Airtel’s mobile customers to enjoy world class customer service with the partners introducing quality best practices based on their experiences of working with international organisations in the telecommunications, banking, finance, insurance and retail sectors.
The widespread adoption of the BPO model by Bharti Airtel across its operations will also have tangible benefits for development of the sector in each country, create additional job opportunities and develop local talent. The partners will provide services in each market which will sustain and build skills, capabilities and resources
The outsourcing of customer service operations will play a key role in making Bharti Airtel competitive in Africa as it focuses on making mobile communications affordable and available to everyone across its 16 markets of operation.
According to Manoj Kohli, CEO (International) and Joint Managing Director, Bharti Airtel, their partnership with IBM, Tech Mahindra and Spanco is aimed at redefining and providing a world class and seamless customer experience in all 16 countries. The BPO model has significant benefits for their customers, the countries in which they operate and their economies. Partnering with world class organisations on such a massive scale will galvanise the BPO sector in Africa and be a catalyst for growth in the sector. These partnerships will offer career enhancement opportunities to their team in this specialist field as they will now get exposure to global best practices and the latest technologies.
This is the second major partnership announcement from Bharti Airtel on the African subcontinent. In September this year Bharti selected IBM to build and manage IT systems to power the mobile communications network across 16 African countries.
According to John Lutz, general manager, IBM Managed Business Process Services,”IBM’s strategic relationship with Bharti Airtel illustrates its focus on emerging markets like Africa. IBM’s business process outsourcing unit helps clients manage functions like customer care so that they are able to channel critical resources to essential growth activities such as product design and marketing.
According to a Deloitte report for the GSMA, the mobile communications industry association, less than 40% of Africans has access to a mobile phone. However, demand is growing at an average rate of 25% annually, and a 10% rise in mobile penetration could increase gross domestic product by 1.2% in developing markets.
According to Vineet Nayyar, Vice Chairman, Tech Mahindra, practically, there are three major benefits to Bharti Airtel from outsourcing its customer service functions. It can scale quickly to manage its expected growth, customers will receive first class service to global standards, and each market will benefit from talent training and development.
By seeding the African BPO market with these three world class partnerships, Bharti Airtel is effectively kick-starting the onshore business process outsourcing sector across Africa. The three partners collectively employ over 90,000 people for providing BPO services in more than 100 countries.
With MTN and Bharti Airtel leading other operators in adoption of outsourcing business model, it is expected that other operators will follow as well.
MTN receives loan to boost network (Nigeria)
www.WirelessFederation.com/news: NGN310 billion (USD2.08 billion) has been received by MTN Nigeria in fresh loan facilities from a consortium of 17 banks to enable it to further expand its telecoms network across the country. Afribank, Citibank and First Bank of Nigeria along with 12 others are extending a facility of NGN250 billion to the company.
IPEX-Bank of Germany (USD250 million) and the Industrial and Commercial Bank of China (USD200 million) are the two foreign banks providing further funding totaling USD450 million. MTN CEO Ahmad Farroukh described the development as a historical milestone in the development of telecoms in Nigeria during the formal signing of the loan agreements in Lagos.
According to Farroukh, the loans demonstrate immense confidence by these global financial players in the managerial competence of MTN and its commitment to its mission of providing peerless telecom services across Nigeria and the loans will go a long way in fast-tracking their network enhancement efforts.
Six operators to bid for NITEL privatization (Nigeria)
www.WirelessFederation.com/news: The privatization bid of fixed line operator Nigerian Telecommunications (NITEL) its mobile arm M-Tel will be opened by Nigeria’s Bureau of Public Enterprises (BPE) on February 16, 2010. Out of 14 pre-qualified consortia, only six met met the 5 February deadline for the submission of technical and financial proposals, and will therefore be able to submit bids for the minimum 75% stake.
Brymedia; AF21/Spectrum consortium; MTN Nigeria; Globacom Nigeria; Omen International; and New Generation Telecommunications (formerly known as Telefonica Consortium) are the successful candidates.
The original deadline for the submission of technical and financial bids was October 2, 2009, but this was pushed back to October 26.
Nigeria: MTN Wins Best Mobile Operator of the Year Award
MTN Nigeria Communications Limited has emerged the Best Mobile Operator of the Year 2005 at the Nigerian Telecoms Awards ceremony.
MTN Nigeria won in the best operator category by beating Vmobile and Globacom.
Expressing delight with this new recognition, Mrs Amina Oyagbola, MTN Corporate Services Executive, described the Best Mobile Operator of the Year award as “exhilarating.”
She added that the recent Award is a confirmation of the influence of the telecoms giant in the sector and its massive impact in the lives of its teeming customers.
She disclosed that MTN opened the year 2006 with the Best CSR Company of the year at the 11th THISDAY Awards held in Lagos. That was immediately followed by a highly acclaimed international award – the Best Use of Phone in the Community, which its Rural Telephone Project won at the 3GSM World Congress in Barcelona, Spain.
Since it launched its operation in Nigeria five years ago, MTN Nigeria according to Oyabgola has won a string of awards and endorsements including THISDAY award for Brand of the Year, 2002 and 2004 and CSR Company of the Year 2005, Brand of the Year at the 2005 Nigerian Telecoms award as well as the City People Award for Excellence.
The company has also chalked up a Gold Award for Creativity and Quality of Service Delivery at the Nigerian Information Technology & Telecom Awards, NITTA 2002 and the Microsoft Award for doing the most to drive up the standards of IT services delivery in Nigeria.
In 2004, MTN was voted the Best Voice Calling Marketer of the Year at the Marketing Leaders Awards, and a Leadership Award 2004 from Card Technology Africa. The company also picked up other distinguished awards such as Most Media Friendly GSM Operator in Nigeria, Nigeria’s Most Respected Company Award as well as the Nigerian Society of Engineers award.
According to Oyagbola, “This is yet another endorsement of our continuous efforts to provide excellent service to our customers.”
Thanking the organisers for the honour, Oyagbola assured that the company was determined to uphold the confidence reposed in it by the Nigerian public. “We shall not rest on our oars. We committed to excellence and innovation” she enthused.
Over the past five years, MTN Nigeria has sustained its position as a telecoms behemoth with innovative product and marketing delivery resulting in a soaring subscriber base. MTN Nigeria, through the MTN Foundation has also earned an enviable track record of impactful social investment and community service.In a related development,Demola Elesho ,Chief Executive Officer of pioneer wireless telecommunications company, MTSFirst, emerged winner of the coveted “Best Telecom Personality” of the year award at the Nigerian Telecom Awards category..
According to organizers of the award, the choice of Eleso was informed by the remarkable rebirth of MTS and the re-positioning of the company as a major contender in the fast growing and highly competitive telecommunications industry in the country. “What Dem Eleso has accomplished with the MTS brand is simply an extra-ordinary feat and we are extremely impressed by the turn-around of the company within an incredibly short period of time.”
In his reaction at the event, Eleso dedicated the award to the resilience, hardwork, determination and support of the entire MTS staff, management, shareholders and directors of the company. He also expressed his gratitude to the organizers for the recognition extended to him and the entire MTS brand. According to Eleso “in spite of its many challenges, MTS has re-emerged to take its rightful position as a pioneer in the telecommunications industry and will continually deploy the imperative strategies aimed at actualizing its corporate objective “To be the local telecoms champion providing our customers with simple, dependable and affordable services”.
To many industry watchers, Eleso’s award is a major milestone that bears the trademark of the expertise of an emerging telecommunications icon.
Highly resourceful and forward-looking, it was the Eleso led management team’s business strategy that set off MTS on an aggressive expansion coverage to Abeokuta, Ibadan, Abuja, Port Harcourt while improving services in Lagos with over 12 additional base stations.
By sharpening the company’s marketing strategy, Eleso also increased the MTS market share. Today, the brand enjoys significant awareness and visibility which has culminated in the stimulation and sustainability of customer loyalty.
Eleso’s strings of successes however predates his appointment with MTS. Mr. Network as he is fondly called by the media, it was he who supervised and saw to the successful implementation of Y’ello Bahn, a mega backbone which earned his former employers a competing edge in the industry.
Other nominees in the category were Sifiso Dabengwa, former CEO of MTN and Chief Ezekiel Fatoye, CEO, Multilinks Telecommunications Limited. The very colorful event was chaired by Nigeria’s former military leader, Gen. Abdulsalami Abubakar (rtd). Also in attendance were other top government functionaries like the Minister of Communications, Chief Cornelius Adebayo, Governor Gbenga Daniel of Ogunstate, Governor Saminu Turaki of Jigawa and the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Engr. Ernest Ndukwe.
Source- http://allafrica.com/stories/200608240145.html
MTN Nigeria Communications Limited has emerged the Best Mobile Operator of the Year 2005 at the Nigerian Telecoms Awards ceremony.
MTN Nigeria won in the best operator category by beating Vmobile and Globacom.
Expressing delight with this new recognition, Mrs Amina Oyagbola, MTN Corporate Services Executive, described the Best Mobile Operator of the Year award as “exhilarating.”
She added that the recent Award is a confirmation of the influence of the telecoms giant in the sector and its massive impact in the lives of its teeming customers.
She disclosed that MTN opened the year 2006 with the Best CSR Company of the year at the 11th THISDAY Awards held in Lagos. That was immediately followed by a highly acclaimed international award – the Best Use of Phone in the Community, which its Rural Telephone Project won at the 3GSM World Congress in Barcelona, Spain.
Since it launched its operation in Nigeria five years ago, MTN Nigeria according to Oyabgola has won a string of awards and endorsements including THISDAY award for Brand of the Year, 2002 and 2004 and CSR Company of the Year 2005, Brand of the Year at the 2005 Nigerian Telecoms award as well as the City People Award for Excellence.
The company has also chalked up a Gold Award for Creativity and Quality of Service Delivery at the Nigerian Information Technology & Telecom Awards, NITTA 2002 and the Microsoft Award for doing the most to drive up the standards of IT services delivery in Nigeria.
In 2004, MTN was voted the Best Voice Calling Marketer of the Year at the Marketing Leaders Awards, and a Leadership Award 2004 from Card Technology Africa. The company also picked up other distinguished awards such as Most Media Friendly GSM Operator in Nigeria, Nigeria’s Most Respected Company Award as well as the Nigerian Society of Engineers award.
According to Oyagbola, “This is yet another endorsement of our continuous efforts to provide excellent service to our customers.”
Thanking the organisers for the honour, Oyagbola assured that the company was determined to uphold the confidence reposed in it by the Nigerian public. “We shall not rest on our oars. We committed to excellence and innovation” she enthused.
Over the past five years, MTN Nigeria has sustained its position as a telecoms behemoth with innovative product and marketing delivery resulting in a soaring subscriber base. MTN Nigeria, through the MTN Foundation has also earned an enviable track record of impactful social investment and community service.In a related development,Demola Elesho ,Chief Executive Officer of pioneer wireless telecommunications company, MTSFirst, emerged winner of the coveted “Best Telecom Personality” of the year award at the Nigerian Telecom Awards category..
According to organizers of the award, the choice of Eleso was informed by the remarkable rebirth of MTS and the re-positioning of the company as a major contender in the fast growing and highly competitive telecommunications industry in the country. “What Dem Eleso has accomplished with the MTS brand is simply an extra-ordinary feat and we are extremely impressed by the turn-around of the company within an incredibly short period of time.”
In his reaction at the event, Eleso dedicated the award to the resilience, hardwork, determination and support of the entire MTS staff, management, shareholders and directors of the company. He also expressed his gratitude to the organizers for the recognition extended to him and the entire MTS brand. According to Eleso “in spite of its many challenges, MTS has re-emerged to take its rightful position as a pioneer in the telecommunications industry and will continually deploy the imperative strategies aimed at actualizing its corporate objective “To be the local telecoms champion providing our customers with simple, dependable and affordable services”.
To many industry watchers, Eleso’s award is a major milestone that bears the trademark of the expertise of an emerging telecommunications icon.
Highly resourceful and forward-looking, it was the Eleso led management team’s business strategy that set off MTS on an aggressive expansion coverage to Abeokuta, Ibadan, Abuja, Port Harcourt while improving services in Lagos with over 12 additional base stations.
By sharpening the company’s marketing strategy, Eleso also increased the MTS market share. Today, the brand enjoys significant awareness and visibility which has culminated in the stimulation and sustainability of customer loyalty.
Eleso’s strings of successes however predates his appointment with MTS. Mr. Network as he is fondly called by the media, it was he who supervised and saw to the successful implementation of Y’ello Bahn, a mega backbone which earned his former employers a competing edge in the industry.
Other nominees in the category were Sifiso Dabengwa, former CEO of MTN and Chief Ezekiel Fatoye, CEO, Multilinks Telecommunications Limited. The very colorful event was chaired by Nigeria’s former military leader, Gen. Abdulsalami Abubakar (rtd). Also in attendance were other top government functionaries like the Minister of Communications, Chief Cornelius Adebayo, Governor Gbenga Daniel of Ogunstate, Governor Saminu Turaki of Jigawa and the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Engr. Ernest Ndukwe.
Source- http://allafrica.com
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