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OTTs free to exploit MTN SA's R11.7bn in capex

OTTs free to exploit MTN SA's R11.7bn in capex

MTN South Africa has given more detail on its spending plans for 2017 to construct a formidable data network and expand coverage across South Africa at a cost of up to R11.7bn.

The company has also expressed a view that OTT players such as WhatsApp and Skype can use its network infrastructure freely despite concern over 'low financial contribution' to local networks echoed during a parliamentary committee looking into possible regulation of OTTs earlier this year.

Babak Fouladi, MTN Group Chief Technology Officer says the benefits from improvements to MTN's network over the coming year will be fully accessible to OTTs.

"Our users make use of social media platforms and this means we can work together. We are part of the same ecosystem and not in competition. OTTs drive network traffic and add to our customer's experience of the network."

MTN says its network optimisation strategy will encompass software features and investment in infrastructure stability which will lead to improved network capacity and availability.

The telco claims to have doubled LTE throughput speeds in the last eighteen months along with the roll of 4500 additional LTE sites in all the main cities across South Africa in the same period.

A customer experience management tool is currently under pilot in at least three of MTN's 22 markets including South Africa.

Fouladi also emphasised MTN's position on the allocation of 700/800/2600 spectrum saying delays experienced in the allocation of high frequency spectrum are hampering the ability of operators to roll out new generation networks and build networks that cater to growing data demands.

"The exponential growth in data consumption due to the rapid adoption of smart devices has not been supported and complemented by the allocation of requisite spectrum to support these services. Delays in expediting the allocation of spectrum is stifling mobile broadband penetration and is restricting the ability of the operators to build and roll out quality networks that can meet the demands of today's digital age."

Fouladi says some of the spend in the new year will be dedicated to addressing a number of outstanding challenges including power stability and vandalism of its telecommunications equipment at its sites, which includes back-up batteries and generators. The operator is looking to sign a new security contract by the end of the year alongside negotiations for rentals and leases.

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