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MTN Restrategises, Raises Investment on Data in 2018

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  • MTN Restrategises, Raises Investment on Data in 2018

MTN Nigeria, the largest network operator by subscriber number said it has since redirected its focus on capital expenditure (CAPEX), to investing more on data facilities rather than voice.

The telecom company said it took the decision because it observed that Nigerian subscribers are fast shifting from voice communication to data communication.

The telecoms company made the disclosure in Lagos shortly after it signed the documents through which it secured a N200 billion loan facility from 12 banks for network expansion, part of which it said, would be spent on.

The General Manager, Corporate Treasury Finances at MTN, Mr. Ishmael Nwokocha, who made the disclosure, revealed that out of the N180 billion the company earmarked for CAPEX this year, large chunk of the money was spent on network expansion, upgrade and optimisation for data, in order to meet the growing demand of its customers for data services.

According to him, MTN had a legacy network that was built to provide voice services but decided to redirect its focus from voice to data and invest heavily in data service offering because of the shift from voice to data, which has become a global phenomenon.

“In 2016 we spent N192 billion on CAPEX, in 2017 we spent N225 billion on CAPEX and in 2018, we earmarked N180 billion on CAPEX, and a large chunk of the 2018 budget was directed to network expansion, upgrade and optimisation to meet the growing demand of our subscribers for data services,” Nwokocha said.

“We are currently experiencing more demand for data services from social media like WhatsApp. As we transit from call-centric to data-centric, we need to improve our infrastructure for data service offering, and we have to prepare for the future, if a large part of our revenue will be coming from data, hence our new focus and energy are on data and how to invest more in our data facilities,” Nwokocha added.

Addressing the status of MTN Nigeria in rolling out its Long Term Evolution (LTE) technology, Nwokocha said, “MTN is not in the process of acquiring LTE technology for its broadband internet penetration, because we have already invested in LTE and we have the technology running.

“For every telecom company, the foundation is always about the frequency, because the more frequency they have the better services they can offer, and this is what we had long invested in, to further boost coverage in underserved and unserved communities of Nigeria. If we have sufficient frequency, our data coverage will be much better.

“We already have LTE services, what we are doing is expanding our LTE services in Lagos, Abuja, Port Harcourt, and we are currently in nine cities, even though we have cities that are still not on 4G.

“This is part of the reasons why we are interested as the biggest telecoms operator in the county, to expand our capital expenditure to cover full data service offerings.”

“In the last two years, our focus as a telecoms company had been on increasing customers’ experience through our network expansion and we will continue to invest until that is achieved,” he said.

Responding to questions on the general rollout of 5G technology, Nwokocha said there was need for operators to exhaust 3G and 4G network rollout before embarking on 5G network rollout.
According to him, 3G and 4G smartphone penetration has remained low.

“We can talk of 3G and 4G smartphones and network rollout in in cities like Lagos and Abuja where we have better penetration, but this is not so in the rest of Nigeria,” he added.

“MTN has tested 5G rollout in South Africa, we are going to conduct a test in Nigeria also, but for us to push up this, we have to make sure that the 5G compliant smartphones are in the market and that the smartphones are in the right preference,” Nwokocha said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Fintech

From Trading to Credit: Robinhood Launches No-Fee Credit Card with Gold Membership Perks

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Robinhood Markets Inc. has announced the launch of its highly anticipated no-fee credit card and it was accompanied by exclusive perks for Gold membership subscribers.

This bold move is a step in the company’s mission to evolve into a comprehensive financial services provider.

The Robinhood Gold Card boasts an array of enticing features. Chief among them is the absence of annual costs or foreign transaction fees, positioning it as an attractive option for consumers seeking financial flexibility.

Moreover, cardholders stand to benefit from a generous 3% cash back on all categories of purchases, a competitive offer in comparison to industry rivals.

Vlad Tenev, CEO of Robinhood, emphasized the company’s commitment to innovation and industry leadership in an interview.

He expressed the intention to not merely introduce a credit card, but to revolutionize the market with a product that sets new standards for customer satisfaction and financial empowerment.

The announcement has sparked enthusiasm among investors, with Robinhood’s shares witnessing a 6.9% surge in early market trading following the news.

This surge further underscores the market’s confidence in the company’s strategic direction and its potential to disrupt traditional financial services.

Beyond the credit card venture, Robinhood has been steadily diversifying its offerings. With the introduction of retirement products and the expansion of commission-free trading services internationally, the company is positioning itself as a formidable player in the global finance landscape.

As Robinhood continues to innovate and expand its suite of services, its trajectory suggests a promising future as a leading force in democratizing access to financial tools and services.

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Telecommunications

NCC Files Copyright Infringement Charges Against MTN Nigeria and Others

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Karl O Toriola - Investorsking.com

The Nigerian Copyright Commission (NCC) has taken legal action against MTN Nigeria Communications Ltd. and four individuals, including its Chief Executive Officer, Karl Toriola, over alleged copyright infringement.

The charges, filed in the Federal High Court, Abuja Division, revolve around the unauthorized use of musical works belonging to artist Maleke Idowu Moye.

According to the NCC, the defendants are accused of offering for sale, selling, and trading musical works of Maleke without his consent between 2010 and 2017. These works were allegedly used as Caller Ring Back Tunes without proper authorization.

The musical pieces in question include popular tracks such as “911,” “Minimini-wanawana,” and “Stop racism,” among others.

The commission further alleges that the defendants distributed these musical works to subscribers without authorization, infringing upon the rights of the artist.

The charges are based on provisions of the Copyright Act, Cap. C28, Laws of the Federation of Nigeria, 2004.

As the case awaits assignment to a judge and a fixed date for mention, it marks a significant development in the ongoing efforts to uphold copyright protection in Nigeria’s telecommunications sector.

This legal action underscores the NCC’s commitment to safeguarding the intellectual property rights of artists and creators within the country.

MTN Nigeria, a major player in the telecommunications industry, now faces a legal battle that could have broader implications for how intellectual property rights are respected and enforced within Nigeria’s digital landscape.

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Telecommunications

MTN’s MoMo Sees 32.2% Surge in Transaction Volumes

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MTN Nigeria - Investors King

MTN Group’s mobile money platform, MoMo, has experienced a 32.2% surge in transaction volumes.

With 72.5 million active users, MoMo continues to solidify its position as a leading fintech service provider in Africa, tapping into the continent’s burgeoning mobile banking sector.

The company’s success underscores the growing trend of Africa’s young and tech-savvy population embracing mobile technology to address financial needs.

Mobile phones are increasingly becoming a tool for bridging gaps in services, particularly in banking, presenting a lucrative opportunity for wireless carriers like MTN to capitalize on the burgeoning fintech market.

MTN’s achievement comes as it finalizes a deal with Mastercard Inc., valuing its fintech business at an impressive $5.2 billion.

This strategic partnership further enhances MTN’s position in the digital finance space, positioning it for continued growth and innovation.

However, MTN is not alone in its fintech endeavors. Rivals such as Airtel Africa Plc, Safaricom Plc, and Vodacom Group Ltd. are also making strides in digital transformation, with plans to separate and monetize their fintech businesses in the long term.

Airtel Africa, for instance, is reportedly considering an IPO for its mobile money unit, indicating the high stakes and intense competition within the sector.

Despite the remarkable success in its fintech ventures, MTN faced challenges in its core telecommunications business, with service revenue growth slowing to 6.8%.

Inflation and currency devaluation in key markets, particularly Nigeria, impacted profitability, highlighting the complexities of operating in diverse African markets.

As MTN continues to expand its fintech footprint and invest in infrastructure to enhance connectivity across the continent, it remains poised to capitalize on the immense potential of Africa’s digital economy.

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