MTN to pay $3bn for upgrades in Nigeria
MTN Group will spend more than $3bn to upgrade and expand the infrastructure of its operations in Nigeria over the next three years to improve the quality of its service in its biggest market.
"We’ll continue to invest at this rate in the medium term, and make sure the overall quality of service is acceptable," CEO Sifiso Dabengwa said on Thursday.
Dabengwa acknowledged that MTN has challenges with quality of service driven by the "high demand" in Nigeria.
In the first quarter of this year the Nigerian regulator banned three of the country’s four cellphone companies, including MTN, from selling SIM cards for a month.
The Nigerian Communications Commission (NCC) ordered them to improve their service before lifting the embargo. Mobile phone companies were also fined.
MTN reacted by adding 482 2G stations and 597 3G stations so far this year.
The company increased its subscribers to 57.2-million subscribers in Nigeria in the quarter ended March, MTN said in its latest update in April.
Its 49.3% market share makes MTN the largest operator in Africa’s largest economy, with a population of about 174-million.
The company aims to push its subscriber base beyond 60-million this year with a target to sign up 5-million new users.