Back to Home Page
Home MTN today Review of operations Sustainability review Corporate governance Annual financial statements Shareholders' information
Annual Report : MTN Rwanda   Next : MTN Swaziland
Increase font size Decrease font size Print this page Email this page

Review of operations - Contents

MTN Rwanda

 


   
Dec
Mar
   
2005
2005
  Rwanda financial results
Rm
Rm
 


  Revenue
247
250
  EBITDA
130
120
  PAT
68
56
 


  Market information
 
 


  Population (million)
8,9
  Mobile penetration (%)
3
  Mobile market share (%)
100
  Number of mobile operators
1
 


  Operational information
 
 


  Prepaid/postpaid mix (%)
99/1
 


  Note: Financial data reflects 100% of the operation
Total subscribers

 

MTN Rwanda



COMPANY OVERVIEW

MTN Rwanda received its national GSM licence in 1998 and currently dominates the mobile market in Rwanda. Competition in the sector is likely to increase with the privatisation of the state fixedline company. MTN Rwanda recorded strong growth in prepaid subscribers during the period from 209 000 to over 275 000.

Rwanda’s population is estimated at 8,9 million with mobile penetration at 3%. As expected, ARPU declined from USD19 to USD17 due to higher penetration rates and the addition of low-usage subscribers.

CORPORATE GOVERNANCE


MTN Rwanda has three executive directors and one independent non-executive director.

NETWORK INFRASTRUCTURE

During the period, capital expenditure of USD13 million was geared towards the redundancy project. MTN Rwanda also increased its geographic coverage from 64% to 80%. A third switch was commissioned in October 2005 with initial congestion problems resolved and network performance restored. The company remains heavily dependent on generators for power, given persistent power outages in the country which also affect minutes of use.

MARKETING

MTN is the leading and most-recognised brand in Rwanda, through key sponsorships and marketing initiatives. In the period, MTN Rwanda was the official sponsor of the International Exposition in Kigali, and supported sports tournaments and music festivals.

PRODUCTS

During the period, MTN Rwanda introduced several product enhancements and special offers to meet market needs, and continued preparations for the introduction of per-second billing. The launch of the one-card system and multi-PIN voucher, specifically for lower-income prepaid subscribers, have been extremely well received.

Continuing the drive to increase teledensity in rural areas and provide access to telecommunications for the marginalised, the popular community payphone initiative, Tuvugane, now has over 3 300 active subscribers.

DISTRIBUTION

At the end of the period, MTN Rwanda had almost doubled its distribution network, from 2 000 in the previous year to over 3 700. There are now over 2 800 dealer outlets, supplemented by franchise shops, distributorships, retailers and other assorted vendors.

LEGAL AND REGULATORY

MTN Rwanda fully complies with its licence conditions. The liberalisation of the telecommunications industry is under way and MTN Rwanda is an active participant in developing appropriate structures ahead of increased competition.

EMPLOYEES

MTN Rwanda has 173 employees. The company recently implemented an HIV/AIDS policy, which provides for anti retroviral medication and encourages testing, with all costs borne by the company.

CUSTOMERS

MTN Rwanda has achieved significant improvement in call centre service levels, with 82% of calls being answered within 30 seconds. The target for the period was 79%. The call centre receives, on average, 182 000 calls a month.

CORPORATE SOCIAL INVESTMENT

MTN Rwanda continues to participate in the fight against HIV/AIDS by providing two toll-free numbers to the HIV/AIDS Commission and donating RWF3 million to women living with AIDS.