MTN plans to invest $120m in expansion
Apr 05, 2009
MTN recently announced that the number of clients had reached four million. <b>James Odomel </b>talked to the chief technical officer, <b>Francis Kazinduki</b>
MTN recently announced that the number of clients had reached four million. James Odomel talked to the chief technical officer, Francis Kazinduki
What percentage of Uganda is covered by MTN today?
Geographical coverage is 75% and population coverage is 90%.
Where are some of the areas MTN is yet to reach?
The MTN network reaches all parts of Uganda. All districts, counties and sub-counties have an MTN network footprint. However, there are a few areas, mostly islands on Lake Victoria like Koome that have scanty coverage. They will be covered in 2009/10.
Recently you switched on 25 new sites in Masindi, what prompted expansion in that area?
MTN’s plan is to provide full coverage countrywide. These sites are part of this plan and goal that should be realised fully in the next two years. Masindi is a fast-growing region with high economic activity. This requires accelerated increase in sites, not so much for coverage as for capacity.
How many more sites are you likely to switch on this year and in which areas? In terms of spreading connectivity to marginal areas, apart from viable markets for services, what other factors do you consider?
A total of 141 sites, mostly in rural areas, will be switched on this year all over the country. This is perhaps what you have referred to as marginal areas. We have found a huge demand for services in the rural areas. This shows the value of telecommunications in the lives of people.
In preparation for the increased demand on the network, three regional switching centres are being established, including one in Masindi. This will provide resilience to the network and allow localising of traffic, hence creating network efficiencies.
What is your estimated cost for the entire network upgrade and expansion this year?
It will be more than $120m (about sh241b). This could be increased if there is increased need.
Since MTN’s establishment in Uganda, what will be the sum of MTN’s expenditure on network upgrade and expansion at the end of this year?
It will be more than $700m, excluding operational expenditure.
What are the challenges affecting network expansion and upgrade?
Local authority demands, regulatory requirements (like the National Environmental Management Authority and Civil Aviation Authority), delays in land acquisition, high rental costs for land, unavailability of power making it inevitable to use generators all the time.
The terrain in some areas is treacherous, hence it requires huge costs to cover the areas. Also, rolling out to such areas is expensive. This is in addition to the already poor roads.
When will we have all the corners of Uganda accessible by telephone?
Within the next two years.
How is the industry coping with the fuel/energy situation in Uganda?
Energy/fuel is our biggest recurrent cost. If this cost could be brought down, the benefit to the consumer and the country would be enormous.
MTN recently announced that it now has more than four million customers on its network. Is the network able to manage such a large base? And can all these customers expect the same quality of service like when the network had fewer customers?
The design of our network has been such that it is scalable to meet the needs of increased subscribers and traffic. The network is handling well the four million subscribers. Quality improvement is continuous
As a leader in the telecom industry, what would you want the Government to do that they are not doing to help the industry?
The Government should play a key role in bringing down the cost of rolling out and operating telecommunications infrastructure for the benefit of the consumers and the country. Spectrum costs and management, for example, need to be reviewed. Other infrastructure such as good roads and power should be availed.
What percentage of Uganda is covered by MTN today?
Geographical coverage is 75% and population coverage is 90%.
Where are some of the areas MTN is yet to reach?
The MTN network reaches all parts of Uganda. All districts, counties and sub-counties have an MTN network footprint. However, there are a few areas, mostly islands on Lake Victoria like Koome that have scanty coverage. They will be covered in 2009/10.
Recently you switched on 25 new sites in Masindi, what prompted expansion in that area?
MTN’s plan is to provide full coverage countrywide. These sites are part of this plan and goal that should be realised fully in the next two years. Masindi is a fast-growing region with high economic activity. This requires accelerated increase in sites, not so much for coverage as for capacity.
How many more sites are you likely to switch on this year and in which areas? In terms of spreading connectivity to marginal areas, apart from viable markets for services, what other factors do you consider?
A total of 141 sites, mostly in rural areas, will be switched on this year all over the country. This is perhaps what you have referred to as marginal areas. We have found a huge demand for services in the rural areas. This shows the value of telecommunications in the lives of people.
In preparation for the increased demand on the network, three regional switching centres are being established, including one in Masindi. This will provide resilience to the network and allow localising of traffic, hence creating network efficiencies.
What is your estimated cost for the entire network upgrade and expansion this year?
It will be more than $120m (about sh241b). This could be increased if there is increased need.
Since MTN’s establishment in Uganda, what will be the sum of MTN’s expenditure on network upgrade and expansion at the end of this year?
It will be more than $700m, excluding operational expenditure.
What are the challenges affecting network expansion and upgrade?
Local authority demands, regulatory requirements (like the National Environmental Management Authority and Civil Aviation Authority), delays in land acquisition, high rental costs for land, unavailability of power making it inevitable to use generators all the time.
The terrain in some areas is treacherous, hence it requires huge costs to cover the areas. Also, rolling out to such areas is expensive. This is in addition to the already poor roads.
When will we have all the corners of Uganda accessible by telephone?
Within the next two years.
How is the industry coping with the fuel/energy situation in Uganda?
Energy/fuel is our biggest recurrent cost. If this cost could be brought down, the benefit to the consumer and the country would be enormous.
MTN recently announced that it now has more than four million customers on its network. Is the network able to manage such a large base? And can all these customers expect the same quality of service like when the network had fewer customers?
The design of our network has been such that it is scalable to meet the needs of increased subscribers and traffic. The network is handling well the four million subscribers. Quality improvement is continuous
As a leader in the telecom industry, what would you want the Government to do that they are not doing to help the industry?
The Government should play a key role in bringing down the cost of rolling out and operating telecommunications infrastructure for the benefit of the consumers and the country. Spectrum costs and management, for example, need to be reviewed. Other infrastructure such as good roads and power should be availed.