MTN records 56.3% YoY growth in data revenue
Telecom giant, MTN Ghana, for the year ended 2021 recorded some 56.3 percentage points growth in revenue accrued from internet data provision services to customers.
Per the telecom’s 2021 financial year results, revenue accrued from internet data provision services to customers amounted to GHS 2.76bn.
Assigning reasons for the significant growth recorded in data revenue, MTN Ghana noted improvements to the network, changes in consumer usage behaviour and increased smartphones on the network coupled with various commercial interventions accounted for the 56.3% increase in data revenue.
Adding that, contribution of data to the service revenue of GHS 7.7bn, increased to 36% in 2021, from the 26.6% recorded in 2020.
“Data revenue grew by 56.3% YoY to GHS2,769 million. This was a result of increased data traffic (+54.9%) owing to various commercial interventions, improvements to the network, changes in consumer usage behaviour and increased smartphones on the network (+10.6%). The contribution of data to service revenue increased from 29.6% to 36.0% YoY in line with our revenue diversification strategy,” said MTN.
With regards to revenue accrued from digital services provided to its clients, the telecom giant recorded a decline of 5.1% in its digital revenue.
Digital revenue at the end of the review period – 2021 – amounted to GHS 0.2 million. The declime in the telecom’s digital revenue can be attributed to its decision to embark on a clean-up of its digital products and services to enhance transparency to its customers.
Despite the decline in its digital revenue, MTN was able to grow its active digital subscriber base by 1.1m to 4.2m.
“Digital revenue declined by 5.1% YoY to GHS0.2 million. During the period. we embarked on a cleanup of our digital products and services to enhance transparency to our customers, improved our digital messaging channels and added more value to our music and gaming offerings to meet the entertainment needs of our customers. These helped grow our active digital subscribers by 1.1 million to 4.2 million in the period,” the company noted.
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Meanwhile, MTN has announced a $1bn investment in infrastructure and information systems for the next 5 years.
MTN has noted that it is in the advanced stage of an agreement to implement a national roaming plan in partnership with other operators in the country as well as with the Ghana Investment Fund for Electronic Communications (GIFEC).
The national roaming plan is part of government’s project to extend communications to most rural communities.
The company further indicated that the $1bn investment is to ensure that it is able to share its infrastructure with other telecommunication operators in Ghana and vice versa.
Adding that, this will increase the efficiency of infrastructure spend, expand quality telecom coverage or reach and accelerate further development and long-term viability in the telecoms industry.
‘’This initiative will enable MTN to share its infrastructure with other telecommunication operators in Ghana and vice versa, in order to increase the efficiency of infrastructure spend, expand quality telecom coverage or reach and accelerate further development and long-term viability in the telecoms industry.
“To ensure the success of these commitments, we project an investment of over $1.05 billion in infrastructure and information systems over five years, starting from 2021, to support the vision of a digital Ghana,” said the CEO of MTN, Selorm Adadevoh.
According to Mr Adadevoh, the company has engaged in bilateral discussions with other operators as well as the regulator to implement the national roaming plan in the country.
