News Column

MTN Uganda Anticipates 12% Revenue Growth In 2014

June 12, 2014 (Ventures Africa)

VENTURES AFRICA – MTN Uganda, a division of South Africa's telecoms giant MTN Group, expects its revenue to grow by 10 to 12 percent this year, uplifted by its data businesses and mobile money, the company’s chief Executive, Mazen Mroue disclosed on Thursday.

With a population of about 34.5 million people, Uganda has seven telecom firms serving its populace as recorded by the industry regulator, Uganda Communications Commission. The economy, now growing at about 6 percent a year, has expanded strongly in the past decade.

The leading provider, MTN Uganda, commands an estimate of 55 percent of the market and as such, anticipates its mobile subscribers increases to 10 million at the end of 2014 as against the 9.5 million recorded in March.

"In 2014, we have an aggressive plan … to increase our 3G and 4G sites coverage across the country to be able to continue accommodating the increased demand (for) internet access." Mroue said.

Mazen Mroue told Reuters that the Ugandan unit planned to spend $72.4 million in 2014 to expand its high-speed internet infrastructure, underpinning its focus on the data market.

MTN Uganda has in prospect, to expand the number of data subscribers from an estimated 2.6million last year, to 3 million by the end of 2014.

Research has shown that mobile penetration in the Ugandan market stands at about 44 percent and as such, offers room for mobile providers to expand rapidly, although competition has eroded margins since 2010 and encouraged some players to sell up.

MTN Uganda's Average Revenue Per User (ARPU), a key industry standard, dropped from $6dollars to about $3.5 to $4 dollars since competition picked up.

"The market could not support more than three operators. This market is quite good … to accommodate two operators," he said. "More than three (and) it will be a complete loss."

For more stories covering the world of technology, please see HispanicBusiness' Tech Channel

Source: Ventures Africa

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters