MTN plans to invest between R5.7 billion and R6.7 billion ($303 million–$356 million) in its South African network this year, primarily to stay competitive in the prepaid market. While still a significant sum, it represents a reduction of R3.1 billion–R4.1 billion ($165 million–$217 million) compared to last year’s spending. Meanwhile, Vodacom is ramping up its investments, planning to inject up to R11.2 billion ($596 million) into its network.
Maintaining top-tier network quality requires substantial investment. Building new towers, upgrading infrastructure, and deploying technologies like 5G and Carrier Combining (3CC) don’t come cheap. Over the past few years, MTN and Vodacom have each spent around R10 billion ($532 million) annually to enhance their networks, with a significant portion dedicated to keeping sites operational during load-shedding.
Despite the reduced capital expenditure, MTN CEO Ralph Mupita assures that network growth will continue. The company has already invested R4.5 billion ($239 million) in network resilience and is now focused on maximizing returns.
However, the prepaid market remains challenging, particularly in two provinces—though MTN hasn’t disclosed which ones. CEO Charles Molapisi maintains that growth continues in other regions, with MTN’s prepaid customer base increasing by 5.5% by the end of 2024. Prepaid data usage also rose 9.5% year-on-year, while postpaid customers saw a massive 36.5% surge in data consumption.
Financially, MTN SA remains strong. Total revenue grew by 1.5% to R52.6 billion ($2.8 billion), while service revenue increased by 3.1% to R43.2 billion ($2.3 billion). Although voice revenue declined by 5.5%, overall earnings (EBITDA) rose 5.1%, driven by strong demand for home internet and bundled voice-data plans. The company also gained 2.4 million new subscribers, bringing its total customer base to 39.8 million.
Looking ahead, MTN is banking on 5G and home internet (FTTH & FWA) for future growth. It also has major enterprise contracts up for renewal, which may tighten margins in the short term but are expected to boost long-term revenue. The overarching goal? Maintain profitability, ensure cash flow, and reinforce its position as a leader in South Africa’s mobile market.
