MTN Ghana

		Launch date November 1996 MTN shareholding (%) 98 Market share (%) 50,5 Mobile penetration (%) 91 Population (million) 25,6 Forecast market size in 2014 (million) 25,3
Michael Ikpoki MTN Ghana CEO

2012 performance

2012 was a good year for MTN Ghana in which we increased net subscriber additions by 10%, lifting customer numbers to 11,7 million. These improvements were driven by enhanced planning, execution of commercial strategies across the business, an efficient distribution network, improved regional structures and attractive customer value propositions.

Customer value propositions included, SMS mega promotions such as Dream Big, sustained data offers under the MTN Pocket Internet campaign theme, segmented propositions for customers (Just4U) and exciting usage stimulation campaigns like Free Beyond 3.

Following the entry of a new competitor in the second quarter of the year, Ghana now has six operators. The heightened competition, together with aggressive market offerings by two incumbents, resulted in MTN Ghana's market share dipping to 50,5% from 52,4%.

Data revenue, excluding SMS revenue, increased 96% in local currency mainly due to sustained market engagement, numerous promotions supported by affordable handsets, lower data prices and appealing bundle packages. The 3G market is becoming increasingly competitive with all operators investing considerably in their networks.

MTN Ghana's capital expenditure of R1 091 million in the year represented 85% of target. We have instituted a more streamlined and centralised capex management structure to ensure better execution in future.

In November 2012, we faced some challenges on our IP (internet protocol), which led to a ban on SIM card sales by the regulator. The ban was lifted early in 2013 after we addressed network quality issues to the satisfaction of the regulator.

Outlook

In 2013, MTN Ghana will continue to invest in 2G and 3G coverage and capacity through our metro and national fibre projects by committing R1 024 million in capital expenditure. We expect to add at least 800 000 new subscribers and increase penetration across the country. We will continue to compete to achieve voice and data growth while increasing our presence in the ICT space through MTN Business. We will also keep looking for innovative and exciting ways of connecting with customers and introducing products and services relevant to their needs. Importantly, as a key player in the economy and a responsible corporate citizen, we will continue to engage with all relevant stakeholders.

A snapshot of our performance

* Excluding profit on tower sales.

Delivery against strategic objectives

Creating and managing stakeholder value

• Increased structured engagement with key stakeholders in all regions.
• Engaged in relevant corporate social investment projects in health, education and economic empowerment through the MTN Ghana Foundation.
• Started implementing the MTN Group culture operating system which is expected to contribute to developing a great Company culture, people and business results.
• Implemented a structured employee engagement framework to improve accountability, transparency on Company performance and objectives while promoting MTN's employee value proposition.

Creating a distinct customer experience

• Launched an internal customer charter to drive delivery of consistent and sustained customer engagement.
• Launched a customer experience programme designed to drive a customer-centric company culture, passion and delivery to best meet the needs of our customers.

Driving sustainable growth

• Continued to lead the market in network investments, translating into increased data speeds and leading to 96% growth in data revenue in local currency for the year. We also led the market in promoting customer awareness through platforms such as the Internet Festival.
• Achieved 620 site upgrades across Ghana, facilitating the acquisition of 1,6 million new customers in 2012 and contributed meaningfully towards increasing teledensity.
• Developed affordable and innovative ICT services, including MTN Mobile Money, m-health, MTN Zone, m-insurance, MTN Opera Mini browser, community payphones and a telecoms management solution for refugee crises and natural disasters.

Transforming our operating model

• Focused on managing a cost-efficient operation.
• Worked with other operations on procurement transformation and related initiatives to promote Group cost efficiencies and best practice sharing.
• Worked with American Tower Company and other tower companies in promoting industry best practice in infrastructure sharing. This has enabled cost-savings to be transferred to customers through competitive tariffs and charges.

Innovation and best practice

• Implemented MTN data, SMS and IDD value bundles to give affordable and convenient offers to our customers.
• MTN Business designed and implemented products such as directory and audio conferencing services to strengthen its impact in the ICT sector.
• Segmented value propositions to customers with the Just4U offers and campaigns.
• Pioneered partnerships to support e-commerce, such as Ghanamart with the Mobile Money platform as a payment medium.