MTN Uganda pursues data expansion

19 Nov 2009

Data is expected to be the next revenue generator for MTN Uganda as ARPU (average revenue per user) slows down due to declining consumer spend triggered by the global economic downturn, says Themba Khumalo, MTN Uganda CEO.

Says Khumalo, who was one of the panelists at the recent AfricaCom conference: “Data is the future, it is a key competitive advantage that will enable us to jerk up depressed ARPU and generate more revenue. The plethora of undersea cables will ensure that the continent will for the first time enjoy more bandwidth with faster connectivity.”

He added that MTN Uganda is looking at tailoring its offerings to give data much-needed impetus.

On the impact of the global economic meltdown, Khumalo says financial institutions have become increasingly circumspect in the aftermath of the global economic meltdown and have therefore become more wary about increasing their loan book and exposure.

Recounting MTN Uganda's experience with raising the US$100 million syndicated loan to fund capital expenditure (Capex) and growth, Khumalo says though MTN Uganda's credentials stood the company in good stead, it took 11 banks to finance the syndicated loan.

As consolidation of the industry gains momentum, telecommunication operators have increasingly been working in concert on infrastructure deployment and sharing to avert duplication and save on Capex.

Khumalo also says MTN Uganda is looking at alternative energy sources. “For example, solar handsets are something of interest to us considering the dynamics of the markets we operate in. We are looking at one that is at the right cost to keep remote customers connected without being connected to the national power grid.”

MTN South Africa is also making headway in finding greener solutions for its operations. It was shortlisted for the AfricaCom Green Telecoms Award for its solar and wind powered base station in Kleinaarpen in the Northern Cape.

Asked about the future of WiMAX technology at MTN Uganda, Khumalo said his operation would still retain WiMAX as it services a particular need. “We believe though that the future is CDMA, which we are deploying as we speak,” he concludes.

MTN Uganda won the Best Solution for Rural Services Award in recognition of its launch of Google SMS.