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MTN Uganda turns to data

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 20 Nov 2009

MTN Uganda will refocus on the data market as the global downturn takes its toll on average voice spend per user.

MTN Uganda CEO Themba Khumalo says: “Data is the future; it is a key competitive advantage that will enable us to jerk up depressed ARPU and generate more revenue. The plethora of undersea cables will ensure the continent will for the first time enjoy more bandwidth with faster connectivity.”

Khumalo says the company is now looking at tailoring its offerings to give data much-needed momentum.

As consolidation of the industry gains momentum, telecommunication operators have increasingly been working in concert on infrastructure deployment and sharing, to avert duplication and save on capex.

The company is expecting good growth in Q4 and has been working with rival operators to roll-out infrastructure across the African country. MTN dominates the country with an estimated 60% of the market share.

According to Khumalo, MTN Uganda also plans to turn to alternative energy sources. “For example, solar handsets are something of interest to us considering the dynamics of the markets we operate in. We are looking at one that is at the right cost to keep remote customers connected without being connected to the national power grid.”

Earlier this month, MTN said it was eager to double revenue from its data business by 2010 and was putting more emphasis on this. The company has ploughed almost $300 million into Uganda over the past two years.

MTN competes with six other telecoms players in the country, including Zain and Orange.

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