MTN South Africa has made a ‘mature’ move and asked for collaboration with other brands in the telecommunications industry to engage themselves in tower sharing services. The move, which was openly stated is due to profitability reasons, is set to increase the market shares of the brands involved in the type of market in which they are competing.
“In a saturated market, one of the things that you have to drive is operational efficiency”. These were the words of MTN Chief Executive to Fin24.
Mteto Nyati continued, telling the report of how building different networks sometimes culminated in the loss of revenue and inefficiency in some areas
“That is wasteful expenditure. Think about how big South Africa is; we also need to be covering rural areas. We need to find ways and means of saying where should we be competing and where should we be collaborating? And that requires a certain level of maturity.”
He further went on to say that “Because our operations are not delivering the same kind of profitability that they have in the past, and yet the shareholders expectations remain the same. That pressure is forcing leadership to become mature quickly.”
Reports have backed up MTN’s tower sharing claim, with the telecomms brand having the intention of selling one of its towers to IHS Holding, another corporation, for cash worth up to R2bn.