MTN has clammed up on reports of cell tower shut-downs in Afghanistan, as all the country's operators reportedly bow to pressure from the Taliban.
Reports have emerged in the country's surrounds that, over the last few weeks, Taliban militants have targeted cell towers with high-level explosives, trying to block residents from calling coalition military troops on cellular hot lines. MTN is one of the operators targeted by these attacks.
However, it appears operators have now bowed to the pressure and are shutting down towers in the southern and eastern parts of the country at night. MTN has not confirmed whether it has joined the other operators in the cellular blackouts.
The Afghan government is reportedly aware of the trouble, and has sanctioned the move by the operators, saying there may be no other way for the operators to protect their infrastructure investments.
Analysts say if MTN has shut down its towers, it has done the right thing, both materially and for its reputation.
Africa's mobile giant has around two million subscribers in the country, making up about 2% of the company's total user base. It has also moved into several countries with political instability, including the all important operation in Nigeria, and its services in Iran.
risks before entering the country. “MTN has followed the right course and, if the other operators are following, there is no risk to MTN's reputation,” says BMI-TechKnowledge research director Brian Neilson.
He says MTN understands risks, especially with its operations in North Africa and the Middle East. “I am sure they are concerned about what is happening, specifically on the political front, but they will not be surprised by it.”
The impact to the operator will also be minimal, since the blackouts are only in certain regions. “With maybe 10% of MTN's subscribers locked off the network in the country, the actual impact will likely only be 0.2% of its revenue, or possibly less,” adds Neilson.
Kaplan Equity Analysts MD Irnest Kaplan agrees, saying the firm's foothold in the country is small and MTN has been right to protect its investments.
MTN has not responded to ITWeb's query on the matter.
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