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MTN Group Looking Beyond Voice to Expand its Product Offering

MTN_Logo_onlyThough voice contributed to 75% of the firm’s R136 495 million revenue from its 207,8 million subscribers in 22 countries across Africa and Middle East, MTN Group is looking beyond voice for growth and digital dominance.

As a revenue earner, MTN says voice continued to face pressure due to aggressive price competition and lower mobile termination rates, which caused a decrease of 1,8 percentage points in its contribution to overall revenue.

According to the firm in its 2013 financial statement,”We continue to explore opportunities to expand our product offering outside of traditional voice and expect to increase our presence in the digital space by leveraging technology and maximising the opportunity of low internet penetration in our markets.”

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MTN’s plan to venture into the digital entrepreneurship space affirms its recent partnership with Rocket Internet and Millicom in Africa and Middle East to build eCommerce business. The firm says the partnership with Rocket Internet will enhance growth in its internet business in Africa and the Middle East. MTN invested around $410 million in both deals set to be complete by the first quarter of this year.

MTN Group will co-own with Rocket Internet all ventures under the Middle East Internet Holding and own a third of Rocket Internet and Millicom’s Africa Internet Holdings.

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Sam Wakoba
Sam Wakobahttp://techmoran.com
Taking you on tour through Africa's tech and business ecosystem, one story at a time since 2010! Based out of Nairobi, Kenya, Sam is the founder and managing director of Moran Media, which runs  TechMoran.com, various other digital platforms and a startup incubation hub for Kenya's youthful entrepreneurs. Drop me a mail at [email protected]

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