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Annual Report : MTN Côte d’Ivoire   Next : MTN Rwanda
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Review of operations - Contents

MTN Côte d’Ivoire

 

   
Dec
   
2005
  Côte d’Ivoire financial results
Rm
 

  Revenue*
768
  EBITDA*
361
  PAT*
164
 

  Market information
 
 

  Population (million)
20
  Mobile penetration (%)
11
  Mobile market share (%)
47
  Number of mobile operators
2
 

  Operational information
 
 

  Prepaid/postpaid mix (%)
98/2
 

  Note: Financial data reflects 100% of the operation
*Six month from July – December 2005
 
Total subscribers

MTN Côte d’Ivoire



COMPANY OVERVIEW

In June 2005, the MTN Group acquired a 51% interest in one of two operators in the country, Telecel Côte d’Ivoire, which was renamed MTN Côte d’Ivoire. Côte d’Ivoire was one of the first African countries to liberalise the telecommunications sector by privatising the state-owned company. The total population is estimated at 20 million with mobile penetration at 11% and competition expected to increase significantly in the near future. Since acquisition, the company recorded excellent subscriber growth of 16% to over 1,1 million, giving the company an estimated market share of 47%.

ARPU of USD20 was reported for the six-month period.

CORPORATE GOVERNANCE


MTN Côte d’Ivoire has seven non-executive and one executive director, Ron Allard, who is the CEO. Governance structures have been enhanced subsequent to the acquisition.

NETWORK INFRASTRUCTURE

A sizeable capital expenditure investment of USD20 million during the period was made, predominantly on network equipment and information technology systems to support anticipated rapid subscriber growth in this underserved market.

MARKETING

The MTN brand was launched to the Ivorian market on 30 December 2005. In 2006 the focus will be on rolling out the brand through targeted marketing initiatives and carefully selected sponsorships.

MTN Côte d’Ivoire continues to face stern competition from the current market leader which is merging with a fixed-line operator to provide aggressive fixed-wireless solutions. A new fixed-line operator was launched in the last quarter of the period, positioning itself as a national low-cost operator. In 2006, a fourth mobile operator is anticipated.

PRODUCTS

A comprehensive product review is under way to align offerings to the different needs of specific customer segments.

DISTRIBUTION

The distribution channel is being reviewed to enhance its competitiveness and make the entire supply chain an integral part of the competitive offer to customers and partners.

LEGAL AND REGULATORY

Licence conditions in the Ivorian market are stringent and closely monitored, extending to the quality of services offered by operators. MTN Côte d’Ivoire is addressing identified network deficiencies as rapidly as possible. Licences for new fixed-line operators allow limited mobility and therefore will permit competition with traditional mobile licences. Rate harmonisation is the target set by the regulator and agreed to by the various operators of fixed and mobile services.

EMPLOYEES

The key focus in 2005 was to internally mobilise our 699 employees on the MTN way, through a vision and values programme.

SOCIO-POLITICAL

Political and social instability in the country since 2002 have hampered economic growth. Despite international mediation efforts and the appointment of a new prime minister and government, there has been little progress towards peace in Côte d’Ivoire. Presidential elections are to be held in October 2006. In the meantime, the disarmament timetable awaits validation from all political parties.