15 / 96
•
Focused 2016 capex on expanding and
improving quality and download speeds of our
3G and LTE networks in key cities
•
Provided solar power charging devices to
entrepreneurs in four countries
•
Offered MTN-branded smartphones in some
markets, and at a price lower than the average
cost of a smartphone
•
Since 2010 we have sold many of our towers
(including in Ghana, Uganda, Cameroon, Ivory
Coast, Zambia, Rwanda and Nigeria), however
we maintain equity stakes in IHS and American
Tower Corp to whom the towers were sold
By expanding our networks, we increase the
stock of manufactured capital and reduce our
stock of financial capital in the short term.
However, ultimately this investment should boost
our business and therefore our stock of financial
capital in the longer term. By advancing
manufactured capital, we impact negatively on
natural capital.However, bysharing infrastructure
and increasing the efficiency of existing
infrastructure we are able to mitigate our impact
on the stock of natural capital.
2016
2015
Value of property, plant and
equipment (R billion)
95,6**
106,7**
Capital expenditure (R billion)
35,3**
29,6**
Number of smartphones on our
networks
82 361
69 224
•
Offices and networks in 24 countries
•
Access to public infrastructure, including transport facilities
2016
2015
2G sites rolled out
2 450
3 116
3G sites rolled out
8 201
7 891
LTE sites rolled out
7 676
5 241
Kilometres of fibre rolled out
5 481
1 469
Depreciation (R billion)
21,0**
19,6**
Impairment of assets (R million)
205**
77**
Impairment of goodwill (R million)
873**
504**
Manufactured capital
We leverage on our asset base of network infrastructure – including data and switching
centres, 2G, 3G and LTE base stations, high-end dedicated fibre, batteries, generators
and air-conditioning units – to service our customers. We also rely on IT equipment and
software, our office buildings and our distribution network (such as customer service
centres and retail outlets) as well as other telecoms equipment (including handsets) and
public infrastructure to run our business.
We continue to implement our plan to outsource our base station or network sites to
tower management companies and to share other telecoms infrastructure. As we extend
our offering of digital services, our investments in data centres are increasing, either
through retrofitting and modernising existing facilities or investing in new data centres.
**Reported – includes hyperinflation and the relating goodwill
impairment, tower profits, Nigeria fine and MTN Zakhele Futhi
impact.
MTN Group Limited
Integrated Report 2016
13
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