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MTN means business in Africa

Angela Gahagan, MTN Business head, talks about Africa and the promise of the operator's investment in local infrastructure.

Mandy de Waal
By Mandy de Waal, ITWeb contributor
Johannesburg, 21 Jun 2011

2011 is a year of infrastructure growth for MTN, which it hopes will realise a next-generation mobile network that could revolutionise connection speeds. MTN is busy piloting a long-term evolution (LTE) network that will supersede 3G, often referred to as 3G++. The operator is investing R4 billion in infrastructure development this year.

Angela Gahagan, managing executive of MTN Business, says these infrastructure investments will realise significant benefit for business customers.

“Many of our customers access their corporate networks through a mobile device to share files, e-mail, and access applications. LTE will allow for a faster experience. As SA gets access to improved connectivity through initiatives like this, and the undersea cables, it is important to remember not to focus on the connectivity, but rather think of it as an enabler to other services.”

Gahagan says experience in customer forums show that people often fixate on networking technology rather than what this enables. “With the ability to move business solutions that were previously expensive into the cloud, and the opportunity to use software as a service, organisations in SA can and will save millions.”

Gahagan spoke to ITWeb about the issue of telecoms costs, mobile trends, Africa, whom she respects and the best advice anyone ever gave her.

ITWeb: What's the cost of telecoms in SA, and how does this compare with Africa and the rest of the world?

Gahagan: SA is no longer one of the most expensive telecoms countries; in fact, some services we offer are very cost-effective. When it comes to cost you need to think of the value. Yes, for the rest of Africa, telecoms may be considered 'expensive', but when you consider some of the geographical challenges and what needs to be done in order to connect a branch to a corporate network, it is relative.

ITWeb: Has the recession affected the businesses? What trends have you seen?

Gahagan: The recession has accelerated interest and the uptake in cloud computing and virtualisation. Many IT decision-makers were apprehensive as these are significant disruptors and require complete changes in IT departments. IT admin-focused jobs were made redundant to reduce costs, and CIOs had no choice but to move things to the cloud. Now that the cloud and virtualisation have proved themselves and we are coming out of the recession, IT decision-makers are adopting these technologies for the right reasons. These include placing valuable IT employees in more meaningful, ROI-generating positions and letting service providers, such as ourselves, manage their Microsoft Exchange environment.

ITWeb: What has the recession taught you?

Gahagan: How to better manage communications costs and to find better ways of doing things. Gone are the days when your employees need to be at their desk in an expensive building in an office park. Everything can be done remotely, at very minimal cost to the organisation.

ITWeb: What's your take on the big mobile and networking trends for business?

Gahagan: This word never seems to go away, but further convergence. MTN Business recently launched MTN UniPresence, which is made possible due to the convergence of an IP and GSM network. This will, of course, lead to further mobility. In addition, we are going to start seeing more businesses building social networking into business processes and less e-mail. For example, when an employee is accessing an ERP application, at the click of a button they can call/chat/video conference/comment on/share a piece of information with someone else who is using that or had used that record.

ITWeb: Where is MTN in Africa and where are you seeing the best growth?

Gahagan: Most of the MTN operations across the 23 countries now own an ISP, whether acquired or organically grown. So MTN Business can deliver to all of these countries, and more. The more deregulated a country is, and of course, the more politically stable the country is, that is where the most growth is. Countries like Kenya, Uganda, Ghana and Ivory Coast are seeing the most growth.

ITWeb: What is MTN learning about doing business in Africa?

Gahagan: It is important to work closely with the government authorities and regulators - just think of the example we had in Guinea now. [Editor's note: MTN was involved in a payment wrangle with the Guinea government that was resolved in May.] It is important to give back to the local communities, and hire local.

Everything can be done remotely, at very minimal cost to the organisation.

Angela Gahagan, head, MTN Business

ITWeb: Any anecdotes from doing business in Africa?

Gahagan: When visiting Uganda, I asked why we had chairs in the street outside the branches. I was told it was for the customers who were coming in to the branch to deposit funds into their Mobile Money accounts, a sight not seen in South Africa. This is indicative of the growth Mobile Money has for countries like Uganda.

ITWeb: What local and international business titles do you read?

Gahagan: Business Day, Finweek, Financial Mail, Time, and Harvard Business Review.

ITWeb: Who are your business gurus and why?

Gahagan: Oprah Winfrey because she made being human a business; Richard Branson for never being afraid to take a chance; Tamara Mellon, the founder of Jimmy Choo, because it is not always important to be the brand, but it is important to create it.

ITWeb: Which local business leaders do you most respect and why?

Gahagan: Cyril Ramaphosa for his diversity in business; Wendy Luhabe for empowering women; and Ernest Oppenheimer for leaving a legacy.

ITWeb: What African business leaders do you most admire?

Gahagan: Mandela, for showing that to serve is to lead. He's iconic.

ITWeb: What's the best advice you have ever been given?

Gahagan: Be credible and knowledgeable... business is about trust.

ITWeb: What's your personal motto?

Gahagan: For every problem there is a solution. Seize every opportunity.

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