MTN on revenue growth, data prices & the relaunch of mobile money service

MTN, a leading African telecommunications company, is navigating through a challenging market environment marked by tough competition and regulatory scrutiny. The company recently reported muted revenue growth, citing the impact of data price cuts from the previous year and new subscriber rules. CNBC Africa's Fifi Peters sat down with MTN's CFO, Ralph Mupita, to discuss the company's strategy for growth and how it is addressing concerns raised by regulators. Mupita emphasized the company's commitment to providing affordable communication services to South Africans and highlighted the importance of accessing high-demand spectrum to improve network quality and lower costs. One of the key areas of focus for MTN is engaging with regulatory bodies to address concerns around data pricing. Mupita mentioned ongoing discussions with the competition commission regarding data bundles and public benefit organizations. The company is working on implementing changes to comply with regulatory requirements while also considering the needs of its customers. Another point of contention raised during the interview was the recent spectrum trading deals involving MTN and Vodacom. There were concerns that these deals could lead to a duopoly in South Africa's telecom sector. However, Mupita clarified that MTN's market share is around 30%, which does not support the notion of a duopoly. He stressed the importance of freeing up high-demand spectrum to enhance network capabilities and reduce costs for consumers. As MTN looks ahead, Mupita highlighted some of the macroeconomic challenges facing the company, including currency fluctuations and supply chain disruptions due to events like the coronavirus outbreak. Despite these challenges, he expressed optimism about the company's digital transformation efforts, particularly in the financial services sector. The relaunch of the mobile money payment system in South Africa is a step towards diversifying MTN's revenue streams and expanding service offerings. In terms of management changes, MTN recently announced that Group CEO Rob Shuter will not renew his contract. Mupita assured that he is committed to his role as CFO and will continue to support Shuter until his departure next year. When asked about the possibility of stepping into the CEO role, Mupita remained focused on his current responsibilities but did not rule out the prospect. Overall, MTN faces a complex landscape of regulatory challenges, market competition, and global economic uncertainties. The company's ability to adapt to these challenges while pursuing strategic initiatives like digital transformation and spectrum expansion will be crucial for driving revenue growth and delivering value to shareholders.