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Annual Report : MTN Zambia   Next : MTN Congo Brazzaville
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Review of operations - Contents

MTN Zambia

 

   
Dec
   
2005
  Zambia financial results
Rm
 

  Revenue*
75
  EBITDA*
-6
  PAT*
-33
 

  Market information
 
 

  Population (million)
11
  Mobile penetration (%)
4
  Mobile market share (%)
19
  Number of mobile operators
3
 

  Operational information
 
 

  Prepaid/postpaid mix (%)
97/3
 

  Note: Financial data reflects 100% of the operation
*Five months, from August – December 2005
Selected statistics

 

MTN Zambia



COMPANY OVERVIEW

In August 2005, the MTN Group acquired 100% of Telecel Zambia, the second-largest of three network operators in Zambia with an established GSM network. It was successfully relaunched as MTN Zambia in August 2005.

The Zambian mobile market is estimated at over 660 000 subscribers – a penetration of 4% – in a population of over 11 million. MTN Zambia recorded 97 000 subscribers at 31 December 2005. ARPU of USD20 was recorded for the five-month period.

CORPORATE GOVERNANCE


The company has four executive directors and one non-executive director. Governance structures were enhanced and key departments and committees established.

A new permanent management team was appointed to head up the staff complement of 134, with temporary secondments assigned to support the permanent team.

NETWORK INFRASTRUCTURE

Since acquisition, the focus has been on upgrading the existing core network to accommodate growth in subscribers, including more than doubling the mobile switching centre’s capacity.

MARKETING

The MTN brand was successfully launched and distribution channels and outdoor media rebranded. These activities resulted in good market awareness of MTN’s arrival in Zambia with the objective of operating a high-quality network, and expectations of innovative products and services in the future.

PRODUCTS

Capitalising on the rebranding campaign, MTN Zambia launched the pay-as-you-go flat rate tariff plan and access-for-life campaign, aimed at growing market share in the small and medium enterprise market. Both products were well received. A highly successful public access tariff was piloted to extend telecommunications services to more citizens.

DISTRIBUTION

MTN Zambia has increased its distribution points to 699 in key strategic areas by zoning areas to manage and control the distribution chain. Seven MTN Connect Stores were commissioned.

LEGAL AND REGULATORY

MTN Zambia is committed to place 10% of the company’s shares with the Zambian public as required by its licence and a proposal in this regard has been submitted to the Zambian authorities. A new telecommunications act is expected to be introduced in 2006 and management has been actively participating in its development.