South Africa’s MTN has paid US$192m for operating licences in the Côte d’Ivoire and Ghana just a couple of weeks after overhauling its operational structure. The telco still faces a US$3.2bn fine in another part of west Africa, Nigeria, prompting Moody’s to downgrade its rating.
South Africa’s MTN (JSE:MTN) has paid US$192m for operating licences in the Côte d’Ivoire and Ghana just a couple of weeks after overhauling its operational structure.
MTN Côte d’Ivoire said it had made a down-payment of XOF75bn (US$124m) to extend its licence, which had been set to expire in March 2016.
The sum represents 75% of the total amount owed and, because it exceeds the 50% down-payment threshold, entitles MTN to a 17-year licence rather than a 15-year one, the telco said. It did not specify when it would pay the remainder.
Meanwhile, MTN said in a separate statement that its Ghanaian unit has been named a winner in the country’s spectrum auction and agreed to pay US$67.5m for a 15-year 4G licence in the 800 MHz band.
MTN said the licence, to be awarded by the National Communications Authority of Ghana, will enable the local unit to launch 4G services to support surging demand for data.
MTN Ghana claimed to have some 15 million subscribers at the end of Q3 2015. It said data revenue increased 78.6% year-on-year in the nine months through to 30 September, contributing 28.7% to total revenue.
Early this month, MTN overhauled its group structure in a bid to strengthen “operational oversight, leadership, governance and regulatory compliance” across its 22 markets in Africa and the Middle East
The telco has had a tough year, losing its group CEO and South African and Nigeria heads.
The company also faces a US$3.2bn fine in Nigeria, reduced from an initial US$5.2bn.
Yesterday, Moody’s downgraded MTN’s rating to Baa3, citing uncertainty surrounding the fine.
