MTN, Africa's largest mobile operator, is set to spend $3 billion on its Nigerian unit over the next three years to improve network quality.
This is according to a Business Day report, which quotes CEO Sifiso Dabengwa as saying the company will continue to invest at this rate in the medium-term.
This year, MTN Nigeria will account for the lion's share of its spending, with almost R11 billion being put into infrastructure in the West African country. It and other operators have come under fire from the Nigerian regulator for failing to meet what MTN calls unrealistic performance indicators.
Last year, MTN spent R14.3 billion in Nigeria, its largest operation, as it established 2 743 new 2G sites and 1 607 co-located 3G sites. However, in March, MTN said it would trim its capital spending this year to R26.2 billion, a significant drop on what it spent last year and also less than 2012's R28.8 billion investment.
The group indicated in its results presentation for the 2013 year that it invested more than it expected in 2013, pumping R30.2 billion into the ground as capital spending increased 4.6%.
Dabengwa explained the projected lower investment comes as capacity on the network has improved. MTN saw 2013 as a catch-up year in terms of infrastructure investment and is "now in a good position", he said.
MTN was happy with the 15% "headroom" on its networks across its 22 countries of operation, which allows it to expand its subscriber base, and congestion is never more than a percent, said Dabengwa
In the three months to March, MTN Nigeria grew its subscriber base marginally to 57.2 million and lost some market share post a one-month ban on the sale of SIMs, which was imposed by the Nigerian Communications Commission for three of the four operators in that country. After the lifting of the ban, the group has seen strong subscriber growth, it has noted.
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