MTN Sells Tower Assets in Rwanda and Zambia to IHS:

South Africa based MTN Group has agreed to sell its tower portfolios in Rwanda and Zambia to IHS Holding for an undisclosed amount.

Under the terms of the deal, MTN will sell a total of 1,228 mobile networks towers to IHS's subsidiaries in Rwanda and Zambia, comprised of 524 and 704 towers respectively.

The sale of the towers builds on two previous deals with IHS in Cameroon and Côté d'Ivoire, for a total of 1,758 towers.

Under the agreements, IHS will acquire and operate the towers and related passive infrastructure and will invest in a build-to-suit program to support MTN's future requirements in both countries. MTN Rwanda and MTN Zambia will become the respective anchor tenants on the towers for an initial term of ten years.

IHS will market services on the towers in Rwanda and Zambia, promoting tower sharing and colocation with other users.

The transactions bring the total number of towers in IHS's portfolio to 10,500.

Moody's Affirms MTN Debt Rating, Changes Outlook to Stable:

Moody's Investors Service has affirmed the issuer rating of MTN Group to Baa2 and national scale rating at A1.za. Concurrently, Moody's has changed the outlook to stable from positive.

"Today's change in outlook to stable from positive predominately reflects MTN's increasing exposure to riskier markets which is tempering any possible upward rating pressure, despite MTN's strong and stable consolidated credit metrics over the past few years." says Dion Bate, Vice president- Senior Analyst. "MTN's exposure to the risks within the political, social, regulatory and economic environments in the key countries in which it operates such as South Africa (Baa1/negative) and Nigeria (Ba3/stable) are important drivers for MTN's ratings (Baa2/stable)", says Mr Bate.

Other contributing developments to stabilising the outlook include: (1) regulatory challenges across various markets; (2) litigation and cash flow constraints associated with its Iran operations, MTN's third largest contributor to earnings before interest, tax, depreciation and amortization (EBITDA); and (3) competitive pressures across its key markets, although we view MTN's dominant market positions as a mitigating factor to withstand such pressures.

The stable outlook reflects Moody's expectation that MTN's credit profile will continue to remain strong supported by subscriber and top-line growth trends in most of its markets. Furthermore, the outlook assumes MTN's continued ability to upstream the majority of its cash flows and that its liquidity profile at group and subsidiary levels remains prudently managed.

MTN to oppose Turkcell lawsuit:

MTN Group will vigorously defend the Turkcell lawsuit, the Turkish operator‘s fifth claim arising from the unsuccessful bid to obtain a mobile licence in Iran.

In a statement, MTN said the latest attempt by Turkcell was issued out of the South Gauteng High Court this week. Like the four previous cases, this matter emanates from Turkcell’s alleged grievances arising from its unsuccessful bid to obtain a mobile licence in Iran, and the award of that licence to Irancell.

While the summons has not yet been served on it, MTN understands that the claim is now made against MTN, its wholly owned subsidiary, MTN International (Mauritius) Limited (MTNI) and others, in which Turkcell claims an amount of some US$4.2 billion, plus interest and legal costs

By way of background, three of the suits brought by Turkcell and its subsidiary, East Asian Consortium (EAC) have already been dismissed, including one against MTN and MTNI.

In late 2005, EAC was unsuccessful in its bid before the Iranian Court to restrain the Iranian Ministry of Telecommunications from committing what the EAC alleged were breaches of certain statutory requirements and agreements.  This was followed by arbitration in 2008 against the Iran government under the Turkey-Iran Bilateral Investment Treaty, which has not yet been decided.

Also in 2008, EAC commenced an arbitration under the rules of the International Chamber of Commerce (ICC) against Iran Electronic Development Company for alleged breach of a shareholder’s agreement concluded between the parties in 2004. The ICC Tribunal dismissed Turkcell’s claims in a final award in April 2012.

Turkcell filed a suit against MTN in the USA in March 2012, accusing the company of bribery and other acts of corruption that it said caused it to lose out on the license to operate a mobile network in Iran. 

MTN notes development in Turkcell case:

The MTN Group has noted reports that Turkish mobile phone operator Turkcell Iletisim AS (Turkcell) has re-filed its lawsuit against MTN in the South Gauteng High Court in Johannesburg.

MTN said in a statement that it could not comment further at this stage, since it had not received or viewed the court papers.  “Although we don’t have details of the case, MTN continues to believe that there is no legal merit to Turkcell's claim and will accordingly oppose it,” the statement read.

Turkcell has alleged that MTN’s bid to participate in the second mobile phone network in Iran was corrupt.

MTN, Etisalat partner to extend reach:

Etisalat, leading telecom operator in the Middle East and Africa,  today announced its partnership with MTN Group to extend their regional network reach via Etisalat SmartHub.

MTN Group, a leading emerging markets telecommunications provider, will connect through Etisalat’s SmartHub at Fujairah CLS to expand its advanced data network capabilities. The South Africa-based multinational company operates in African, European and Middle Eastern countries.

Etisalat’s SmartHub provides advanced content, IPX, IX and high speed data services for its customers in the UAE and the region. The new partnership will also enable MTN Group to connect via a new route to Europe, beneficial to its large customer base in the Middle East.

Etisalat's SmartHub is a global communications hub facilitating direct routing of traffic between the Middle East, Africa, Asia and Europe.

Ali Amiri, Executive Vice President, Carrier & Wholesale Services, Etisalat, said: “We are delighted to have such a prestigious telecom group as MTN join the SmartHub community of operators and content providers. SmartHub is designed to provide our partners with a one stop shop for connectivity to the region.

“This partnership with MTN Group showcases the importance of the SmartHub as well as puts UAE in the limelight as the regional hub for telecom services. We look forward to a mutually beneficial relationship and enhancing customer experience.”

Jyoti Desai, Group Chief Technology and Information Officer, MTN said: “Etisalat’s Smarthub is seen as an important hub in our bid to expand MTN’s world class global multi-services network, as it allows us to provide advanced communication services to our customers in the Middle East and Africa. The rising significance of UAE’s strategic position as the communication network hub for the Middle East and Africa region underpins the importance of this partnership in our expansion plan.”

MTN Marked 200 Million Subscribers:

MTN Group today marked 200 Million Subscriber Milestone by announcing a bold R200 Million initiative to improve the quality of education across its markets in Africa and the Middle East over the next 2 years.

News of MTN reaching the 200 million subscriber mark comes a year before it celebrates 20 years of connecting people and economies, from South Africa – the launch pad – to South Sudan, its most recent market.

As a multinational telecommunications company operating in emerging markets, says MTN Group President and CEO Sifiso Dabengwa, MTN has a particular opportunity to make a meaningful contribution to social development.

“Due to the lack of access to quality education and infrastructure, and low literacy rates in most of these countries, MTN has chosen to direct a significant amount of its corporate social (CSI) spend towards education over the next two year. This will provide people with the skills, knowledge and confidence they need to make positive decisions about their lives,” says Dabengwa.

MTN runs a comprehensive multi-country CSI programme through MTN Foundations spanning education, health and other national priorities. A grand total of R193 million was spent in these three areas during 2012. Going forward, the company will scale up its contribution towards building knowledge economies in its markets by investing in more education initiatives aimed at empowering learners and teachers using ICTs and mobile learning.

Etisalat SmartHub Selected To Bolster MTN's Reach:

Etisalat, leading Telecom operator in the middle East and Africa today announced its partnership with MTN Group to extend their regional network reach via Etisalat  SmartHub. MTN Group, a leading emerging markets telecommunications provider, will connect through Etisalat’s SmartHub at Fujairah CLS to expand its advanced data network capabilities.

The South Africa-based multinational company operates in African, European and Middle Eastern countries.

Etisalat’s SmartHub provides advanced content, IPX, IX and high speed data services for its customers in the UAE and the region. The new partnership will also enable MTN Group to connect via a new route to Europe, beneficial to its large customer base in the Middle East.

Etisalat’s SmartHub is a global communications hub facilitating direct routing of traffic between the Middle East, Africa, Asia and Europe.

Ali Amiri, Executive Vice President, Carrier & Wholesale Services, Etisalat, said: “We are delighted to have such a prestigious telecom group as MTN join the SmartHub community of operators and content providers. SmartHub is designed to provide our partners with a one stop shop for connectivity to the region.

“This partnership with MTN Group showcases the importance of the SmartHub as well as puts UAE in the limelight as the regional hub for telecom services. We look forward to a mutually beneficial relationship and enhancing customer experience.”

MTN Cameroon now counts 8.2 million subscribers:

MTN Cameroon now counts 8.2 million subscribers in the country, for a market share of 58.1%. This was announced by the President and CEO of the MTN Group, Sifiso Dabengwa, while reporting the financial results of the Group for the third quarter of the year. Dabengwa revealed that MTN, the leading emerging market mobile operator, has increased its subscriber base by 1.1% to 203.8 million subscribers in 22 countries across Africa and the Middle East, thus confirming its position at the forefront of global technological changes, delivering a bold, new Digital World to its customers.

Amongst the 22 countries, MTN Cameroon delivered a particularly encouraging performance, increasing its subscriber base 7,0% to 8,2 million subscribers and maintained its market share of 58,1%. This was attributable to a wide range of bonus offers and effective dormancy management. An improved distribution channel also contributed to the operation’s performance. During the same period, MTN Cameroon also registered a 30.9% growth of Mobile Money subscribers.

Since the beginning of the year, MTN Cameroon’s distribution network of products and services has been enriched with five new proximity Service Centres located in the towns of KOUSSERI, YAOUNDE and DOUALA, increasing its number of customer touch points nationwide to 15, with the most recent inaugurated on 17 October in BONAMOUSSADI, DOUALA. This is in addition to the thousand sales points of the chain of partners of its distribution network.

Since the year 2000, MTN Cameroon says it has invested over 500 billion francs CFA to build in Cameroon, a state-of-the-art, reliable, robust and an extended telecommunications network, to contribute to the development of the country. In 2012, the company reached the symbolic number of 1000 BTS sites, thus being the first company to reach this technological milestone in its market. The MTN network now covers all the 10 Regions of Cameroon including Divisions and Districts, and provides communication services to 90% of the national population, allowing it to strengthen the links between Cameroonians and the rest of the world.

MTN speakers gear up for AfricaCom 2013:

MTN Group Chief Commercial Officer Pieter Verkade will lead a team of MTN speakers who are expected to share insights and exchange ideas with their peers from across the world at the 16^th annual AfricaCom Conference in Cape Town next week. 

Verkade will join a panel of speakers to deliberate on“unleashing Africa’s creativity for digital consumers” on the second day of the conference, which takes place from 12-14 November at the Cape Town International Convention Centre.

Other MTN speakers include Shaibu Haruna, General Manager for Sales and Customer Service at MTN Uganda, Jemima Kotei, Executive for Customer Service at MTN Ghana and Lambo Kanagaratnam, Chief Enterprise Business Officer at MTN South Africa.

Haruna will participate in a panel discussion on how mobile money strategies fit within mobile operators’ strategies, when the conference opens on 12 November. The next day, Kotei will join the Customer Experience Management panel to discuss the “do’s and don’ts of CEM strategies in Africa”. Kanagaratnam will deliver a presentation on “guaranteeing quality connectivity across the African continent” on the last day of the conference. 

MTN has been participating in the AfricaCom conference for the past seven years.

“MTN is looking to the future. And in keeping with our mission “to make our customers’ lives a whole lot brighter”, the conference is a platform for MTN to share ideas with like-minded leaders in our industry on how best we can serve the needs of our customers," says Rich Mkhondo, Executive for Group Corporate Affairs at MTN.  

The MTN exhibition stand at this year’s event will showcase some of MTN’s products and services such as MTN Mobile Money. In addition, the stand will feature the Bloodhound Super Sonic Car (Bloodhound SSC) model.

MTN partnered with Bloodhound Engineering Adventure, a company in the United Kingdom last year to support the Bloodhound SSC initiative. The Bloodhound SSC is a jet and rocket powered car which aims to break the land speed record.  Through the MTN Foundation, the partnership aims to inspire students to take up careers in science, technology, engineering and mathematics. 

MTN Group closed out third quarter with 203.8m subscribers:

Johannesburg-based African operator MTN Group says that as at 30 September 2013, it recorded 203.762 million subscribers across its operations spanning 22 countries across Africa and the Middle East, up 1.1% quarter-on-quarter from 201.534 million at end-June. However, it noted a slowdown in subscriber growth due to increased price competition and registration regulations. Commenting on the latest operational results, MTN Group president and CEO, Sifiso Dabengwa, said: ‘The third quarter has been characterised by lower than anticipated subscriber growth following ongoing price competition and subscriber registration requirements across a number of markets. Subscriber growth was limited to 1.1% quarter-on-quarter, mainly impacted by disconnections in Nigeria related to registration requirements, slower than expected subscriber growth in South Africa, as well as slower subscriber growth in Iran. During the quarter, the group continued to focus on segmented competitive voice and data tariffs, and improving network quality to cater for increased traffic. Data and Mobile Money remain a key focus for the group, with traditional voice revenue under pressure. Data revenue for the group increased by 34.7% year-on-year, contributing 14.1% to total revenue, while Mobile Money subscribers increased 10.7% q-o-q to 13.4 million across 13 operations.’