Nigeria’s largest mobile phone network, MTN Nigeria, has resolved to invest more on data facilities rather than voice.
It said it is redirecting attention from
capital expenditure (CAPEX), a decision taken in support of Nigerians
who are fast shifting from voice to data communication.
capital expenditure (CAPEX), a decision taken in support of Nigerians
who are fast shifting from voice to data communication.
MTN said it has signed an agreement to secure $654 million loan facility from 12 banks for network expansion.
Mr. Ishmael Nwokocha, the General Manager, Corporate Treasury Finances of MTN, confirmed that t a large chunk of
, revealed that out of the $588 million earmarked for CAPEX this year would be spent on network expansion.
, revealed that out of the $588 million earmarked for CAPEX this year would be spent on network expansion.
The money would be spent also on upgrade
and optimisation for data, in order to meet the growing demand of its
customers for data services.
and optimisation for data, in order to meet the growing demand of its
customers for data services.
According to him, MTN has a legacy
network that is 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.
network that is 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 $627.5 million on CAPEX, in 2017 and $735.3 million in 2018,” 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.”
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.”
He also 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.
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.
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.
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.
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.
telecoms company had been on increasing customers’ experience through
our network expansion and we will continue to invest until that is
achieved,” he said.
On the rollout of 5G technology, Nwokocha
said there was need for operators to exhaust 3G and 4G network rollout
before embarking on 5G network rollout.
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.
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.
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.
