MTN sets aside R4.6bn for NGN

Johannesburg, 27 Mar 2009

MTN will spend R4.6 billion in 2009 on infrastructure to complete its next-generation network (NGN) by 2011.

The network upgrade project began in 2008, with R4.8 billion in capital expenditure set aside for the project in the first year.

The mobile operator states the focus for 2009 will be on increasing network transmission capacity through improvements to infrastructure, software upgrades and the “introduction of higher speed bearers on the network for a seamless service”.

“In a concerted effort to ramp up its service offering, MTN SA has invested billions of rands to improve the quality of our network. This investment enables MTN to move towards a layered architecture to meet the growing voice and data demands placed on network infrastructure,” states MTN SA CTO Sameer Dave.

According to Dave, data usage increased by 70% in 2008 and MTN “expects it [usage] might double this year due to current usage patterns”, while voice calls increased by 33%.

“During 2009, the complex migration of the network from its original ATM and TDN networks to the NGN (or IP) will continue with the consolidation of the 2G and 3G platforms, while phasing out the legacy switches.

“MTN's move towards an NGN is an integral part of the natural evolution of being a mobile operator. The project will improve existing platforms and roll-out new platforms to enhance data connectivity speeds and voice coverage,” explains Dave.

Towards self-provisioning

Following the announcement earlier in the year about a partnership with Neotel, for the roll-out of a 5 000km national fibre network, Dave says this project will be a key focus for the company this year.

“The move to self-provisioning is another major goal for us this year. The construction of the metropolitan fibre network around Gauteng and the national long-distance fibre network, together with the network upgrades, will ensure the sustainability of our network going forward,” says Dave.

He also notes that over 80% of its downtime is due to problems experienced by Telkom and Eskom. According to Dave, both state-owned enterprises have been engaged on the issue, but they have both failed to provide solutions so far. The focus, therefore, should be on reducing the reliance MTN had on its services and moving towards self-provisioning, said Dave.

“MTN's reduced dependency on the fixed-line operator to meet growing capacity requirements and the reduction in both operational and customer costs will ensure that, going forward, we retain our competitive edge in a highly-competitive environment,” he says.

MTN also notes that its 2010 plans are under way. The company says it's laying foundations, which will help it meet anticipated increases in voice and data requirements for the tournament. All 10 stadiums will have dedicated coverage and capacity installed, with dedicated equipment and dedicated backup generators for the event, Dave states.