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Ericsson (NASDAQ: ERIC) and MTN Group (JSE: MTN) have renewed their partnership for continued delivery to MTN of two flagship products from the Ericsson Business and Operations Support Systems portfolio, Ericsson Charging and Ericsson Mediation. These solutions are integrated with Ericsson Dynamic Activation (EDA) from the Ericsson Network Management portfolio. As part of the partnership, Ericsson will provide these solutions for the next 5 years across MTN’s pan-African market.

The partnership includes the modernisation of MTN Group’s Business Support Systems (BSS) ecosystem, enabling best-in-class features and capabilities that support exploring monetisation streams and new business models, such as 5G and Internet of Things (IoT).

This partnership plays a significant role in advancing MTN Group’s cloud-native transformation, fostering continued growth and aligning with the accelerated implementation of MTN Group’s Ambition 2025 strategy, which aims to build one of the largest and most valuable platforms utilising connectivity and infrastructure businesses for both mobile and fixed access networks across the consumer, enterprise, and wholesale segments.

With this agreement, MTN will continue using Ericsson Charging, Ericsson Mediation and Ericsson Dynamic Activation as part of the overall BSS landscape. With the ongoing support from Ericsson, MTN will have a robust base from which to grow and scale its services across Africa, capturing and securing revenue streams, enhancing billing accuracy and granularity, supporting new services, delivering revenue assurance, and enabling data monetization through preparation for analytics and IoT.

Mazen Mroue, MTN Group Chief Technology and Information Officer, shares: “We continue looking to elevate our technological infrastructure and offer pioneering services in our markets to our customers while achieving cost efficiency through our expansive scale. The sustained collaboration with Ericsson has been instrumental in promoting innovation, standardisation and enhancing operational efficiency. The recent agreement with Ericsson marks a significant milestone, enabling MTN to tap into the transformative power of cloud computing, driving us towards the objectives outlined in our Ambition 2025 strategy. This strategic move underscores our commitment to embracing innovative technologies that enhance customer experience and drive sustainable growth.”

Hossam Kandeel, Vice President and Head of Global Customer Unit MTN and Customer Unit MTN Africa at Ericsson Middle East and Africa, says: “As we continue to evolve and expand our partnership with MTN Group, we are committed to collaborating and providing the latest technology solutions that will help MTN operating companies to capture and secure revenue streams while delivering improved services to their customers. Our Business and Operations Support Systems portfolio is designed to provide the flexibility and agility communication service providers need to respond to changing customer demands. We are happy to sign this contract and support MTN Group in delivering superior service experiences, creating new business models for 5G, and driving digitalisation across Africa.”

Ericsson’s agile, flexible, robust, and resilient Business and Operations Support Systems and Network Management portfolios uniquely position MTN Group to unlock new revenue streams and capitalise on emerging opportunities in both consumer and enterprise markets. This multi-year partnership is a strong foundation for continued growth and success in the years to come.

Ericsson (NASDAQ: ERIC) and MTN Group (JSE: MTN) have agreed to modernise the core network of MTN’s affiliates in South Africa and Nigeria over five years in line with MTN Group’s MTN Unified Cloud Acceleration (MUNA) principles and objectives.The agreement was concluded recently, where the companies agreed on key strategic priorities and collaborations, underscoring both companies’ shared vision and commitment to fortify their long-term partnership.

Building on existing and successful partnerships for cloud-native core network deployment with Ericsson in both countries, the modernisation will ensure the readiness of MTN Nigeria’s and MTN South Africa’s network infrastructures to enable 5G standalone in the future. The modernised core networks will be powered by Ericsson’s cloud-native dual-mode 5G Core, and will enable MTN Group to achieve its objectives in Nigeria and South Africa of delivering innovative solutions for both consumers and enterprises in Africa.

Mazen Mroué, MTN Group Chief Technology and Information Officer says: “We are embarking on a strategic transformation program to modernise and upgrade our core network infrastructure, signifying a commitment to enhancing network performance and efficiency in respective markets. This collaboration is a key milestone for our Ambition 2025 to set new benchmarks in connectivity excellence, leveraging cuttingedge technologies to deliver superior customer experiences and innovation.”

The modernisation efforts in Nigeria align with national broadband goals and MTN’s strategic objectives. Mohammed Rufai, MTN Nigeria Chief Technical Officer says: ”The network upgrade is geared towards enhancing our core network. When completed, it will further accelerate broadband penetration in alignment with the Federal Government’s Broadband plan. This expansion is also in line with our strategic priorities – building the largest and most valuable platforms, driving industry-leading connectivity operations, creating shared value and accelerating portfolio transformation.”

MTN South Africa’s modernisation journey benefits significantly from this partnership, Rami Farah, MTN South Africa Chief Technology Officer shares: “Ericsson has been MTN SA’s network infrastructure partner for several years. This new partnership is an extension of what has been achieved by both parties over the years. The partnership will enable MTN SA to modernise further and upgrade the core mobile network in line with MTN Group Unified Cloud Acceleration principles and objectives which will ensure the readiness of our network infrastructure to support the strong data growth and enable 5G standalone in the future.”

From Ericsson’s perspective, the partnership with MTN Group is a testament to a shared ethos of innovation and progress. Representing Ericsson, Hossam Kandeel, Vice President and Head of Global Customer Unit MTN and Customer Unit MTN Africa at Ericsson Middle East and Africa says: “Our partnership with MTN Group is based on innovation and progress. Together, we are shaping the future of digital connectivity in Africa with the modernisation of MTN Nigeria and MTN South Africa’s core networks. We aim to drive this influence across the entire continent, ensuring technological advancement and bringing communities closer in the digital age in line with Ericsson’s #AfricaInMotion vision.”

The MUNA principles and objectives are pivotal to MTN’s PACE technology strategy to accelerate the execution of MTN’s Ambition 2025 by transforming MTN’s network infrastructure into a modern, agile, and cloud-native core network. This transformation will empower MTN to offer innovative services to its customers, enhancing operational efficiency, driving growth, and enabling a better customer experience.

MTN Group and Huawei signed a Memorandum of Understanding (MoU) for a Joint Innovation Technology Lab, aiming to deepen cooperation in technological innovation. The signing ceremony, which held at MWC Barcelona, Spain was attended by senior delegations from MTN and Huawei.

This strategic partnership will see the creation of an Innovation Technology Lab at MTN Group’s headquarters in South Africa. The lab will serve as a neutral platform for collaboration within the Africa’s digital ecosystem, accelerating the development, deployment and adoption of innovative digital solutions driven across the continent.

Together, the two companies will leverage this initiative to focus their research and development efforts on key areas such as 5G and beyond, Artificial Intelligence, Big Data analytics, cloud computing, and digital financial services. The partnership aims to accelerate the time-to-market of MTN’s products and services while addressing the unique challenges faced in Africa, including improving network coverage in rural areas, enhancing energy efficiency, and affordability.

Additionally, MTN’s operational teams will actively participate in the innovation process, ensuring the solutions developed directly address real-world challenges and drive meaningful digital transformation and sustainable development in Africa.

Group Chief Technology and Information Officer Mazen Mroue expressed his enthusiasm about the partnership stating, “The Joint Innovation Technology Lab is more than a partnership between two companies; it’s an investment in the growth of Africa’s digital ecosystem. We believe that collaboration is essential for developing solutions that truly meet the continent’s needs, and this Lab will pave the way for a more inclusive, sustainable, and prosperous future for Africa.”

Li Peng, Huawei’s Corporate Senior Vice President and President of ICT Sales & Service, said, “Huawei will continue innovating with MTN to ensure they have the products and solutions required to best serve Africa’s unique market. This will not only give MTN a competitive edge in terms of network quality, user experience, and rapid deployment, but also help MTN achieve their own business objectives. We believe that this newly-established lab will help supercharge both MTN’s R&D as well as Africa’s digital economy, bringing more prosperity to the African continent.”

This partnership further demonstrates MTN and Huawei’s shared commitment to shaping Africa’s digital landscape, opening new pathways for innovation and digital inclusion, and economic growth.

Dedicated to leading digital solutions for Africa’s progress, MTN Group committed to investing US$215 million in infrastructure in Benin over the next three years and building a state-of-the-art office for subsidiary MTN Benin.

These pledges were made during an MTN Group leadership visit to Cotonou, the highlight of which was a meeting with His Excellency President Patrice Talon attended by MTN Group President and CEO Ralph Mupita, MTN Benin Chairman Amadou Raimi, Senior Vice President for Markets Ebenezer Asante, MTN Benin CEO Uche Ofodile and MTN Group Chief Sustainability and Corporate Affairs Officer Nompilo Morafo.

“MTN works to be a force for good in our markets, giving Africans hope, dignity and opportunity,” said Mupita. “We are grateful for the warm reception received in Benin, where we have trialled 5G services and see opportunities to progress this.”

“We are committed to the development and upskilling of the Beninese youth and have made clear our desire to partner with the government and other stakeholders in this regard,” he added.

The President thanked members of the MTN delegation for their commitment and looked forward to future collaboration as MTN Benin – with some eight million subscribers – marks a quarter of a century of operations.

Leveraging intelligent coverage and capacity-based analytics, Unison FWA enables MTN’s sales representatives with real-time insights on the most suitable packages for each customer’s specific needs and location. This ensures that customers receive optimal service at competitive prices with adequate coverage.

Effective subscriber management enables MTN to maintain network stability and better optimise resource allocation, contributing to a more reliable and consistent user experience for all. Furthermore, by safeguarding revenue streams, MTN can continue to invest in network infrastructure and service enhancements.

Amith Maharaj, Executive Network Design and Planning at MTN, expressed, “Our collaboration with WIM Technologies exemplifies our dedication to providing customers with exceptional FWA services. With enhanced network governance, personalised package recommendations, and optimised network performance, MTN’s customers can anticipate a superior home internet experience.”

Anshul Malhotra, CEO of WIM Technologies at WIM Technologies, echoed this sentiment, adding, “We are thrilled to partner with MTN to elevate their FWA offerings. Unison FWA represents our commitment to empowering telecommunications providers with innovative solutions that enhance customer satisfaction and network performance.”

This partnership further solidifies MTN’s position as a leading provider of digital solutions dedicated to driving Africa’s progress. With the introduction of Unison FWA, MTN’s home broadband customers can look forward to a superior and unrivalled experience characterised by reliability, consistency, and personalised service.

NEC Corporation and MTN Group are pleased to announce the successful deployment of Africa’s first 400G optical transponder solution, Phoenix. This initiative marks a significant milestone for the telecommunications industry in Africa, with the potential to revolutionise the way optical networks are built and operated, thereby transforming internet delivery across the continent.

Phoenix is part of the Telecom Infra Project’s (TIP) Open Optical and Packet Transport (OOPT) project group, a collaborative effort involving multiple telecom operators and technology providers. The solution has met TIP’s rigorous test requirements, earning it a Controlled Environment Silver Badge, indicative of its readiness for deployment.

“We are thrilled to receive the Silver Badge recognition from TIP, acknowledging our commitment to promoting open and disaggregated solutions with the Phoenix optical transponder,” said Sou Satou, Senior Director of the Network Solutions Business Division at NEC Corporation. “Our dedication to TIP and the development of open products in the optical transport market remains a top priority for NEC,” she added.

The deployment of Phoenix is designed to accelerate internet connectivity and optimise network operations, thereby democratising access to information. It aims to make affordable internet more widely available across Africa, fulfilling a critical societal need.

Demonstrating its commitment to innovation, MTN has embraced this state-of-the-art technology, integrating it into its production network, specifically across its optical network between Johannesburg and Centurion in South Africa, further demonstrating the technology’s interoperability and backwards compatibility.

“The deployment of Phoenix with NEC Corporation is a significant step toward fulfilling a crucial promise to our customers, to deliver accessible, reliable, and fast internet,” said Amith Maharaj, Executive – Network Design and Planning. “This initiative is part of our ongoing efforts to embrace the latest technologies available that ultimately empower communities across Africa,” he added.

Phoenix is a network device, known as a white box L0/L1 transponder, that can transmit data at speeds of up to 400 gigabits per second. Its disaggregated nature allows it to be programmed to run any vendor’s software, offering operators unprecedented flexibility in hardware and software selection. This disaggregation leads to cost reductions, accelerates innovation, and enables quicker and easier deployment of new network services.

“Disaggregation is the future of networking, and we are proud to be at the forefront of this evolution,” said Anthony Laing, General Manager of Networking at NEC XON. “Through our partnership with MTN, we’ve established NEC XON as a trusted leader in disaggregated networking.”

By leading in the adoption of Phoenix, NEC Corporation and MTN Group are setting a precedent for telecom operators worldwide, offering a scalable and cost-efficient solution that meets the burgeoning demands of a digitally connected society.

MTN Rwandacell PLC (MTN Rwanda) showcased the nation’s first-ever live 5G network technology demonstration at the opening of the Mobile World Congress (MWC) Africa in Kigali. This exhibition, first revealed during the Presidential tour of the conference, underscores MTN Rwanda’s dedication to remaining at the forefront of leading technological progress and its unwavering commitment to delivering the most advanced and reliable connectivity solutions to Rwandans in response to the soaring demand for faster and more reliable mobile and fixed Broadband connectivity.

“5G represents more than speed; it’s a gateway to a world of endless possibilities. It holds the potential to revolutionize sectors such as healthcare, education, agriculture, and many more. For instance, with 5G, remote medical consultations and procedures could become a norm, significantly impacting healthcare accessibility in remote areas.” stated Mapula Bodibe, MTN Rwanda CEO. “Demonstrating new technology is not just about staying at the forefront of innovation; it’s about exploring new ways to improve the everyday lives of Rwandans and positioning the nation as a technology leader on the continent,” she added.

5G has the potential to transform Rwanda’s digital landscape, ushering in an era of unparalleled innovation and connectivity. 5G technology aims to provide access to advanced and high-speed mobile internet services and reduced latency, significantly enhancing internet user experience. With its transformative power, 5G will not only elevate digital experiences but also fuel economic growth and further drive the country’s digital inclusion agenda.

The 5G technology demonstration marks a new era for internet connectivity in Rwanda and exemplifies MTN Rwanda’s unwavering commitment to innovation and its dedication to enhancing the lives of Rwandans with leading network connectivity solutions. With 5G, Rwanda is poised to offer enhanced digital experiences and emerge as a leader for digital advancements on the African continent.

MTN, Africa’s leading telecommunications service provider, is elevating customer experience through a transformative partnership with global consulting firm Accenture and customer experience solutions provider Genesys. This initiative aims to redefine customer care for MTN’s subscribers by leveraging cloud-native solutions and advanced AI capabilities to drive customer-centric innovation and operational excellence.

The Genesys Cloud CX platform, a pivotal component of this transformative programme, is engineered with cutting-edge AI capabilities. It incorporates natural language processing to understand customer queries more intuitively and machine learning algorithms to adapt and improve over time. These advanced technologies work in tandem to provide real-time insights and analytics that are invaluable for decision-making.

For MTN’s expansive network of thousands of agents, this means the ability to offer a service that is not just efficient but also highly personalized. The platform’s AI-driven analytics allow agents to understand customer behaviour and preferences and tailor interactions to individual needs. This level of customization significantly enhances customer satisfaction and fosters loyalty, setting a new standard for customer engagement in the telecommunications industry.

“As we navigate the complexities of a digital world, this transition to a leading-edge cloud-native Contact Centre as a Service (CCaaS) solution serves as a cornerstone for reimagining customer care,” says MTN’s Group Chief Information Officer, Nikos Angelopoulos. “Our collaboration with Accenture and Genesys produced a scalable and adaptable solution that empowers our agents to better serve customers and positions us for long-term growth and operational efficiency.”

Cornelia van Heerden, Executive Customer Experience Operations for MTN South Africa, adds, “We aim to go beyond resolving queries to becoming a trusted partner in our customers’ digital journeys, offering a seamless experience across multiple touchpoints.”

Over the past year, MTN Operating Companies in several countries, including South Africa, Nigeria, and Uganda, have successfully transitioned to the Genesys Cloud CX platform. “This initiative is a testament to our resolve to adapt and grow with our customers, proactively meeting their ever-changing needs,” says Enzo Scarcella, MTN’s Group Chief Consumer Officer.

In South Africa alone, the transformation has yielded a 40% year-on-year reduction in call volume, demonstrating the initiative’s immediate impact on operational excellence. “Digital transformation is not just about adopting new technology; it’s about unlocking new ways to add value to our customers and our business. Our collaboration with industry leaders Accenture and Genesys underscores our commitment to delivering world-class service and operational results,” Angelopoulos adds.

Commenting on MTN’s ongoing technology revolution, Nitesh Singh, Accenture Africa’s CMT Lead, says, “We are proud to partner with MTN and bring our breadth of technological and business capabilities through the Genesys platform to reimagine the customer service offering. We have assisted MTN Group to create value through intelligent decision-making in a competitive business environment by optimizing costs and building resilient, elastic cloud technology.”

Genesys Account Director (Africa), Luisa Coetzee, concludes, “Genesys is pleased to partner with MTN Group in their customer experience transformation journey, collaborating with the different opcos to orchestrate personalized and empathetic experiences for their customer’s unique needs and meeting them where they are. The Genesys Cloud platform enables us to deliver value for all as it is architected to promote better Employee (EX) and Customer (CX) Experiences.”

In the first half of 2023, MTN Group delivered resilient results, advanced our strategy by partnering with Mastercard on the MTN fintech business, and progressed plans to exit Afghanistan. This was achieved in a difficult operating environment marked by elevated inflation, weaker local currencies and regulatory developments across our 19 markets.

“We delivered a resilient performance in H1 23 and made good strategic progress against a tough macro backdrop,” said MTN Group President and CEO Ralph Mupita.

“In South Africa, we were very encouraged by the improved network availability on the back of our power-resilience investment, resulting in a stronger Q2 23 performance than Q1 23,” he said. By end-June, MTN South Africa’s network availability was more than 90% despite severe electricity shortages across the country.

“In Nigeria, we delivered a very strong operational result, having navigated the cash shortages in Q1 23 and increased inflation,” Mupita said. “The policy changes implemented in Nigeria in Q2 23 have short-term negative impacts, but we see these as being very constructive for the investment climate in the medium to longer term.”

MTN Group’s service revenue grew 15% to almost R108 billion in constant-currency terms. This was driven by increases in revenue from data services of 24% and from fintech services of 22%. Revenue from voice services increased 6% in the period. 

At the end of June 2023, we had 292 million subscribers with whom we worked to create shared value. This subscriber base – 4% higher than the same period last year – benefited from lower data rates and improved access to broadband services.

To facilitate the digital economy, we increased the number of active data users by more than 7% to nearly 140 million; reported a 19% increase in overall data traffic; and improved data affordability by reducing the average effective rate per megabyte by more than 22%.

We continued to invest in world-class networks and platforms for the people of Africa, committing R17.2 billion in capital expenditure in the first six months of 2023. The Group’s balance sheet remained strong, with all key metrics well within the limits of our loan covenants.

Driven by solid revenue growth and improved efficiencies, adjusted headline earnings per share (HEPS) increased by 25% to 749 cents and adjusted return on equity (ROE) expanded by one percentage point to 24.4%. These were in line with our medium-term guidance.

The MTN Group Fintech business delivered on our rapid expansion plans. The volume of transactions increased by 37% to 8.3 billion in the first half of the year. These were executed by 61 million active MoMo customers.

Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group Fintech, we executed commercial agreements with Mastercard to support the acceleration and growth of our fintech business’s payments and remittance services.

MTN and Mastercard also signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about US$5.2 billion for the business on a cash and debt-free basis. Signing of the definitive investment agreements is expected to occur in the very near term as we approach finalisation of customary due diligence. The closing of the investment will be subject to customary closing conditions.

We continued to work to simplify our portfolio. The process for MTN Group to exit Afghanistan in an orderly fashion through the sale of our entire shareholding to Investcom AF, and affiliate company of M1, remains well on track. The transaction received conditional regulatory approval to proceed, pending the submission of relevant documentation to the Afghanistan Regulatory Authority.

Looking ahead, MTN will keep working to create shared value across our markets. “We are focused on the continued execution of our Ambition 2025, which remains relevant in the current macroeconomic volatility and presents attractive scope for growth,” said Mupita.

“As we manage the challenges in our operating environment, as well as the near-term impacts on our top-line and margins, we maintain our medium-term guidance.” 

Project East2West partnership will:

Bayobab and Africa50 on Monday signed a partnership to develop Project East2West, a terrestrial fibre optic cable network connecting the eastern shores of Africa to those on the continent’s west.

The partnership will invest up to US$320 million connecting ten African countries over the years 2023, 2024 and 2025.

Bayobab is wholly owned by MTN Group. This investment is within MTN’s previously announced Ambition 2025 plans and will contribute to Bayobab reaching the Group’s target of having 135 000km of proprietary fibre over the coming three years.

“This partnership with Africa50 comes at an opportune time, just as we rebrand MTN GlobalConnect to Bayobab to position the business as an Africa-focused open-access digital infrastructure platform,” said MTN Group President and CEO Ralph Mupita.“The alliance is more than cables and connections; it is about building bridges of connectivity that span nations and bring people closer together.”

“For landlocked African countries, Project East2West will improve latency by almost two-thirds and increase capacity to support high-quality broadband access. In this way, it will level the playing field and ensure that everyone has a fair chance to succeed in the digital world,” he added.

The partnership will offer substantial improvements in data traffic for internet service providers, mobile network operators and hyper scalers operating in these countries. It will also bridge the bottlenecks in global internet traffic landing in and going out of Africa. It is expected to cut latency by up to 65% on the east-to-west route.

Bayobab CEO Frédéric Schepens said: “Guided by the belief that everyone deserves the benefits of a modern connected life, we see the provision of digital infrastructure as critical in driving digital transformation, weaving African countries together and connecting them to the rest of the world.”

He added: “Africa’s connectivity relies on strategic and global partnerships coming together to build the much-needed large-scale backbone infrastructure to meet the explosive demand for digital services. We are looking forward to Project East2West meeting the connectivity demands to power digital services, bridging the digital divide across Africa, and paving the way for the sustainable digital societies of tomorrow.”

As a co-developer, Africa50 is fostering the harmonisation of regional data and security regulations, boosting consumption of local content throughout the region and promoting inter-regional exchanges and regional economic development.

“Project East2West is a remarkable and transformative project that will step-change Africa’s internet capacity expansion drive by supporting the growth and development of 4G and 5G,” said Africa50 CEO Alain Ebobissé.

“This is an important project that will have a significant impact on Africa’s quest to make the internet accessible to most of its growing population. Partnering with a large pan-African company like Bayobab and MTN is important to roll out such an impactful cross-border project,” he added.

The development of Project East2West is expected to be completed in 2025.