Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Connectivity

MTN SA to spend US$137M to connect underserved

Article Image
One of South Africa's biggest telecom operators, MTN SA, is investing R2.2 billion (US$137 million) in network modernization within the Gauteng province, with a focus on extending its reach in low-income areas.

MTN said rising data demand in the country had prompted the investment, which is aimed at boosting participation in the digital economy, especially of people living in underdeveloped township areas.

R30 million (US$1.9 million) has been set aside to help limit the growing problem of infrastructure vandalism and the mobile operator will deploy close to 700 active 5G sites in the region.

"Our investment will continue to drive the rollout of 5G to enable seamless, fast and cutting-edge experience online. We expect to see Gauteng continuing to lead the drive for 5G and other business-focused innovations, such as artificial intelligence, the internet of things and augmented reality," Keith Tukei, GM for Gauteng operations at MTN SA, said in a statement.

According to MTN SA's latest trading update, the operator recorded a healthy performance in the first quarter of 2022, with service revenue increasing by 4.6% and mobile data revenue jumping 14.3% year-on-year. The investment in low-income communities is in line with the company’s 7% increase in prepaid subscribers in SA to almost 27 million.

"Gauteng remains SA's economic hub, with half of all national 5G traffic generated from the province. MTN also saw a 45% increase year-on-year in data volume growth in February. We are therefore making numerous strategic investments to enhance access, availability, modernisation and boost the rollout solutions into rural areas," Tukei added.

The investment shows that MTN SA is using its gains from a recent spectrum auction to expand 4G and 5G connectivity in South Africa while also further enhancing rural, peri-urban, and urban network coverage.

The telco's investment comes on the back of a call by the South African government for big business to help formalize businesses in lower-income areas. The Gauteng Legislature has passed a Township Economic Development Bill which is aimed at helping empower townships and disadvantaged communities in the province economically.

The call by the South African government has also seen other companies like fiber provider Vumatel launch prepaid fiber products in South Africa's townships. The company also recently bought a 45% stake in local Internet service provider (ISP) Herotel, which focuses on connectivity in smaller towns and cities.

Related posts:

*Top image source: pelegraphy on Pixabay.

— Matshepo Sehloho, Associate Editor, Connecting Africa

Innovation hub

Story

Omdia View: February 2024

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Key adoption areas for machine learning in Africa

ICT analyst Francis Hook identifies some of the key sectors that could be positively impacted by machine learning, including education, government services, healthcare and climate tech.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

Omdia View: February 2024

By Omdia Analysts

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002