Ghana: MTN to invest US$1bn in network expansion over 5 yrs

MTN Ghana CEO Stephen Blewett reassured investors of the company’s commitment to growth and development during the Ghana Stock Exchange’s (GSE) ‘Facts Behind the Figures’ forum held in Accra.

He presented an overview of MTN’s strategic plans and recent performance, addressing investor concerns and outlining the company’s future direction.

“We have to continue investing capital. Over the next five years, MTN Ghana plans to spend US$1billion, with a substantial portion of the funds allocated to network expansion and modernisation,” Mr. Blewett stated.

He noted that such a significant investment is necessary to maintain the company’s growth trajectory, pointing out that very few companies are willing to commit such large sums to network infrastructure.

“How many people are spending US$1billion? That’s because we need to do that,” Mr. Blewett remarked, stressing the importance of staying competitive in the telecommunications industry by improving service quality.

In 2024 MTN Ghana began investing about US$200million as part of the broader US$1billion plan, focusing on the expansion of its network infrastructure and IT systems. The company’s ongoing investments have already started in the Greater Accra Region, with plans of extending them to other parts of the country.

The CEO emphasised that these investments are directly tied to enhancing customer experience. The company is using advanced systems that measure customer experience at the phone level, which allows them to track and respond to issues more efficiently.

“We can measure how customers are experiencing services,” he explained. “While some customers are already noticing improvements, there is still more work to be done on ensuring better network coverage and service quality.”

To achieve these goals, MTN Ghana has been replacing old equipment with newer, more efficient technology.

According to the CEO, the company is using a technology known as ‘massive MIMO’ which increases capacity without requiring additional spectrum. This technology allows the company to handle more data traffic and provide faster speeds to its customers.

“We’re putting on brand new equipment – and the new equipment has better capabilities,” Mr. Blewett said, noting that this upgrade is part of the company’s broader network modernisation efforts.

MTN Ghana’s capital investments are also reflected in its performance for first half-2024. According to the company’s H1 2024 performance report, service revenue grew by 31.2 percent year-on-year – driven largely by an increase in data, mobile money (MoMo) and digital revenues. Data revenue in particular saw a significant 55 percent increase, reflecting a growing demand for internet services as more customers rely on data for communication and entertainment.

The company’s data traffic increased by 24.2 percent during this period, supported by a 15.9 percent rise in active data subscribers. This growth is attributed to MTN Ghana’s investments in 4G connectivity and its efforts to improve customer engagement through various value management initiatives.

“Improving our network, investing in our network, investing farther to the home,” was a key focus for the company, according to the CEO.

Voice revenue, on the other hand, experienced a decline; falling by 3.1 percent year-on-year to GH¢1.7billion. Despite a drop in voice revenue, the company saw a 13.7 percent increase in voice usage as customers engaged more with MTN Ghana’s offerings through lower-priced plans.

Mobile Money revenue also grew strongly, with a 44.8 percent year-on-year increase to GH¢1.9billion. This growth was supported by a 16.2 percent rise in the active user base and continued improvements in the company’s digital financial solutions. Advanced services like MoMo saw a substantial 73.3 percent growth, while peer-to-peer transactions grew by 43.1 percent year-on-year.

MTN Ghana’s digital revenue surged by 59.4 percent, largely due to increased demand for services like video, gaming and ring-back tones. The company’s focus on enhancing the digital experience through its percent app and MyMTN app also contributed to this growth. The apps saw significant user growth, with ayoba reaching 2.9 million users and the MyMTN app attracting 1.6 million users, including 0.4 million daily users.

Source: thebftonline.com