MTN scores $65m FIFA sponsorship

Johannesburg, 14 Jul 2006

SA`s mobile operator MTN has secured a global sponsorship deal for the 2010 FIFA World Cup, and will invest $65 million (R462 million) over the next four years to bring the event to the mobile phones of millions of people in Africa and the Middle East.

Announcing the deal in Johannesburg last night, MTN CEO Phuthuma Nhleko noted this makes MTN the first African company to become a global sponsor for the FIFA event, which will be hosted by SA in four years` time.

"This is probably the most significant global event that will take place in Africa in the foreseeable future. The event provides significant attractive opportunities for Africa to showcase its ability to host events of such magnitude," he commented.

According to MTN marketing director Santie Botha, the sponsorship affords MTN exclusive rights to provide mobile content to subscribers in Africa and the Middle East, as well as global marketing rights.

Growth strategy

While the 2010 World Cup is expected to attract a cumulative international audience of 30 billion, MTN will have a presence in 21 countries, reaching 500 million people by the end of this month, Botha added.

As part of a strategy to enhance its growth profile in Africa and the Middle East and to gain further scale in emerging mobile markets, the company recently unveiled a $5.5 billion bid for Middle East mobile telecommunications operator Investcom, which has a presence in 10 Middle Eastern and African countries.

Speaking at the World Cup handover ceremony in Berlin, president Thabo Mbeki said the 2010 World Cup would be the first event of this magnitude where the world would be able to participate via mobile handsets.

The size of MTN`s sponsorship sees it joining other international conglomerates, such as Coca-Cola and Budweiser, as a global sponsor. SA`s First National Bank was the first local company to offer sponsorship for the 2010 FIFA event, with its R30 million investment giving it national sponsorship status.

SA`s biggest mobile operator, Vodacom, said this morning it declined the offer by FIFA to become a global sponsor.