The MTN Group has dedicated R7.1 billion - the equivalent of 70% of the group's EBITDA - to the upgrade of its network infrastructure.
"Part of the upgrade includes our strategy to self-provide. We need to move away from our reliance on Telkom," said MTN CTO Sameer Dave, speaking at a media forum on Friday.
Dave says for most operators who use Telkom for its backhaul, between 50% and 60% of all failures can be attributed to utilities networks. MTN expects to save over R9 billion over 10 years by implementing its self-provisioning strategy.
The company will begin the construction of a national fibre-backbone this year, which it expects to be completed by 2010. The fibre will free MTN from Telkom's networks at a cost of between R1.2 billion and R1.5 billion.
"We may complete this roll-out with another operator as a partner to co-build with us," said MTN MD Tim Lowry.
According to Lowry, while there has been no decision on who will partner with MTN, the company will go ahead with the construction "with or without a co-builder". He said the capital expenditure for the national backbone may increase over time.
Alongside the national backbone, the company has completed a 6km pilot project to roll-out a metro fibre ring in Gauteng. The entire ring will total 180km and will cost the company between R120 million and R150 million. Dave indicated the network will go live in Q3 of next year.
Other investments include a complete core network evaluation, upgrades to its HSPA network and its greenfield BTS site roll-out.
"We are in the process of evaluating our legacy infrastructure and new switches are being brought in to replace them," said Dave. He expects all legacy to be overhauled by the end of the year.
The company has also been increasing the coverage of its 2G network into rural areas and its 3G network is being upgraded to increase capacity.
On the 2010 cards
In 2006, MTN became the first African global sponsor of the 2010 World Cup, standing in for $655 million over the course of four years.
The sponsorship allows it exclusive mobile content rights for Africa and the Middle East, as well as global marketing rights.
The company will provide the dedicated coverage and capacity being installed for 10 stadia, which it says it will do in line with international best practice. The company will invest around R250 million for the design and implementation.
To see where MTN will be laying the national and metro fibre rings click here.
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