Despite the storm that has struck heavily on MTN in recent time, the company is undeterred in its bid to upgrade its network in Nigeria. In a presentation to Nigerian investors, posted on their official website, MTN announced that it is planning to double capital spending in Nigeria in the 2016 fiscal year to the tune of $730 million.
The capital spending is coming days after agreeing to pay a heavily reduced penalty for missing a deadline to deactivate more than 5 million unregistered SIM cards. And with the fine still hanging over MTN’s head, one may even be tempted to question how the company plans to come by the aforementioned capital expenditure, let alone deploy it. Not to further mention that the supposed fine, which pales in comparison to this proposed capital expenditure, would be payable over a 3 year period. But one wouldn’t play down the chances of a company which, despite its recent wobbles still, has an influence in Nigeria that still remains unchallenged; boasting of 57 million subscribers in the country.
Not long ago MTN lost its position as Africa largest telecommunication company to Vodacom Group and has identified in its new plan some key strategy that may once again return it to its former glory; beginning with an upgrade and expansion of its wireless and fixed-line network, the roll out of LTE services and the expansion of its 3G population from 67.23 per cent to about 90 per cent in the West African nation.
MTN is also confident of meeting higher revenue plans in Nigeria as it seeks to reconnect subscribers and introduce new services as the year winds-down.