In a bold strategic move aimed at fortifying its foothold in the telecommunications sector, MTN Group has embarked on a comprehensive expansion initiative, securing fiber licenses in nine new territories, notably including Uganda.
This monumental endeavor, spearheaded by MTN’s wholesale fiber subsidiary, Bayobab, marks a significant milestone in the company’s relentless pursuit of connectivity and digital transformation across the African continent.
The meticulous planning and execution behind this expansion effort have seen Bayobab incorporating nine dedicated fiber companies, each equipped with the requisite licenses to operate seamlessly within their respective territories.
Markets such as Uganda, Côte d’Ivoire, and the Central African Republic feature prominently in MTN’s annual results, underscoring the strategic importance of these regions in the company’s growth trajectory.
At the heart of MTN’s expansion strategy lies its ambitious “Ambition 2025” roadmap, aimed at optimizing the value of its fiber assets and diversifying revenue streams.
The structural separation of fiber assets under this strategy reached a significant milestone with Bayobab’s acquisition of the fiber network of MTN Zambia in a sale-and-leaseback transaction, highlighting the company’s commitment to unlocking the true value of its infrastructure assets.
Bayobab’s relentless pursuit of growth extends beyond terrestrial networks to encompass specialized routes, including the crucial East to West Africa corridor, which serves as a vital artery for communication and data transmission across the continent.
Furthermore, the successful landing of the 2Africa subsea cable in Ghana in November 2023 underscores MTN’s dedication to enhancing connectivity and bridging the digital divide across Africa’s coastal regions.
Speaking to the media, MTN Group CEO Ralph Mupita reaffirmed the company’s commitment to investing in critical infrastructure projects, citing the East to West fiber build-out as a pivotal investment to ensure resilience and continuity in the face of potential disruptions.
Bayobab’s stellar performance in 2023 showcases its unwavering commitment to excellence, with the deployment of approximately 7,000km of new fiber, augmenting its total proprietary fiber inventory to an impressive 114,000km.
The wholesaler recorded commendable year-on-year growth in external revenue, driven by strategic partnerships and innovative solutions within its Communication Platforms unit.
Moreover, Bayobab’s collaboration with global mobile networks has yielded tangible results, with the launch of over 6,800 roaming services aimed at enhancing international roaming affordability for MTN subscribers across Africa.
Despite facing challenges in certain segments, such as flat external revenue in the Fiber segment, Bayobab remains resolute in its mission to drive connectivity and digital inclusion across the continent.
In parallel with its expansion efforts, MTN provided updates on market exits, including the ongoing sale of its operations in Guinea-Bissau and Guinea-Conakry to Telecel. These strategic decisions underscore MTN’s commitment to optimizing operational efficiencies and focusing on markets that offer the greatest potential for growth and value creation.
As MTN continues its journey of transformation and expansion, fueled by innovation and a steadfast commitment to connectivity, the company remains poised to shape the future of telecommunications in Africa, empowering individuals, businesses, and communities to thrive in an increasingly digital world.
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