As a leading provider of telecommunications services - the industry sector that is contributing most substantially to GDP in emerging markets, especially Africa and the Middle East - the MTN Group has assumed a prominent role as an engine for economic growth in thousands of communities within which it operates. An assessment of the economic dimension of the MTN Group's corporate sustainability performance includes an appraisal of the company's financial performance, as well as a consideration of the broader economic impacts - positive and negative, direct and indirect - that its activities have on the full range of stakeholders and on the economic systems in which it operates.
Performance highlights
Economic performance
- The total subscriber base increased from 23 million at the end of December 2005 to 40 million in December 2006
- Revenue increased by 49%, from R27,2 billion in December 2005 to R51,6 billion in December 2006
- Total payments to various governments include taxes and licence fees and have increased by R6,2 billion. Governments, in turn, use this income to improve public services for their constituents.
Technology: developments, initiatives and plans
- In November 2006, MTN launched a world first in the mobile telecommunications market with the introduction of i-Mail (MTN Integrated Mail), a new fully integrated and flexible web-based mailbox, enabling customers with internet access to listen or view their voice mail, fax mail or video mail from anywhere in the world.
- In 2006, MTN Uganda launched a country-wide roll out of its WiMax network. The platform will initially be used as a fixed data platform, but will replace 3G as a broadband network by 2008.
Network coverage: quality, reliability, consistency and support
- Capital expenditure of R9,4 billion reflects our commitment to continuously improving the quality and reliability of our network.
- As confirmation of our ongoing success in network expansion, MTN was recognised in September 2006 as the African Mobile Operator of the Year at the inaugural CommsMEA Awards held in Dubai. The award recognises operators that have shown outstanding performance and results in key market segments and is acknowledgement of the MTN Group’s leadership in telecommunications in emerging markets.
Local supplier support
- MTN continues to support local suppliers in our operational territories to promote regional economic development. The majority of our local small and medium enterprise (SME) suppliers cater for our operational office requirements (eg computer services and stationery).
- The value of goods and services sourced from local suppliers across all operations amounted to R7,4 billion in 2006.
Black economic empowerment performance in South Africa
- MTN achieved a BEE profile rating of AA, an improvement on the earlier BB rating. The AA rating details our total BEE score at between 75% and 85%, compared to the BB rating of between 45% and 55%.
- MTN procured good and services totaling R1,9 billion with black empowered companies during the financial year; this BEE spend amounted to approximately 29,22% of total procurement.
- Invested some R86 million on entrepreneurial development, of which approximately R46 million was spent on commissions to entrepreneurs. Indirect entrepreneurial activities resulting from this investment have empowered an estimated 4 000 individuals.
Return to stakeholders
- A detailed analysis of our financial performance for the year under review can be found in the Chief Financial Officer’s report and Value-added Statement detailed in our Annual report. (Refer to page 49)
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