MTN at 20 - The 5 significant events in the history of the largest telecommunications company
MTN@20: 5 significant events in the history of Nigeria's largest telecommunications company in the last few years
Nigerian telecommunications company MTN is commemorating its 20th year in business this year. Despite experiencing many ups and downs over the years, the telecommunications behemoth has guided the industry's development to become the largest and most popular mobile operator in the country.
Since the beginning of its operations in Nigeria in 2001, the company has enjoyed a successful period of growth. It has accomplished remarkable things while also weathering some storms along the journey.
MTN Nigeria, which has over 68 million subscribers, provides call, data, and mobile money services to millions of Nigerians through 15 service centers, 144 Connect Stores, and 247 Connect Points, which are located in every state of the country. MTN Nigeria has over 68 million subscribers.
Due to the company's 20th anniversary celebrations, it is providing free data and airtime to its throngs of subscribers. But, beyond that, here's a rundown of five key MTN facts and moments from the past few years that you might have missed.
MTN Nigeria listed on the Nigerian Stock Exchange
The listing of MTN on the Nigerian Stock Exchange is, without a doubt, the most significant event in the company's history in the country.
MTN Nigeria finally listed on the Nigerian Stock Exchange in 2016, as part of a settlement agreement with the Nigerian Communications Commission (NCC) to settle a $1 billion fine. The stock listing value of MTN Nigeria was $6 billion.
Despite the fact that MTN initially registered 20.4 billion ordinary units of shares with the SEC, the company chose to list under the “listing by introduction” method, which only allows existing investors to sell their own shares to other investors, rather than to the general public.
Since its initial public offering, the company has grown to become one of the most highly capitalized on the NSE, with a market capitalization of N3.42 trillion as of August 9, 2021.
MTN wants to sell 14% stake in its Nigerian business
MTN Nigeria is a subsidiary of the MTN Group, a telecommunications conglomerate that operates in 22 countries across Africa and the Middle East. MTN Nigeria is headquartered in Lagos.
In Nigeria, MTN Group owns 75.81 percent of the telco's Nigerian branch, while Nigerian shareholders own 18.7 percent of the company through special purpose vehicles, 2.78 percent is owned by Mobile Telephone Networks NIC B.V., and 1.76 percent is owned by Public Investment Corporation SOC Limited.
Earlier this year, the telco's parent company announced that it would be selling 14 percent of its shares in its Nigerian operations in order to increase the ownership of the company by more Nigerian retail and institutional investors in the country.
The sale will be structured as an equity shelf program, with the terms and conditions of the sale dependent on market conditions over the medium term. Once the transaction is completed, MTN will retain control of the company, but its shareholding will be reduced to 61.81 percent.
MTN Nigeria has more than 68 million subscribers
MTN Nigeria is without a doubt the largest telecommunications company in Nigeria. However, despite the effects of the pandemic and the National Communications Commission's ban on sim registration, the telco continues to have the largest number of telecom subscribers in the country.
It is responsible for approximately 39.28 percent of the total number of telecom subscribers in the country. According to National Communications Commission (NCC) statistics for October, the telco currently has a total of 73.57 million active subscribers, which is 22.9 million more than its closest competitor, Airtel.
Due to regulatory restrictions on new SIM sales and activation, however, the company reported a lower subscriber base of 68.9 million subscribers during the first six months of the year, down from the previous year's figure of 70.6 million subscribers.MTN Nigeria's revenue for the first half of the year reaches N790 billion.
MTN's half-year report reveals a significant increase in revenue over the course of the year. With revenue of N790 billion for the first six months of 2018, the telco has reported a whopping 82.8 percent increase over the N432.2 billion it earned during the same period in 2017.
This was despite the fact that its revenue base was severely impacted in 2019 as a result of the N330 billion fine paid to NCC as well as the effects of the Covid-19 pandemic that occurred last year.
MTN is the first telecommunications company in Nigeria to test 5G technology
MTN Nigeria is the first telecommunications company in the country to announce plans to roll out 5G internet connectivity. In 2019, the telco hosted a live 5G demo that was similar to the one that took place in South Africa, and achieved a speed of 20 gigabytes per second with a latency of less than 5 minutes.
This follows the announcement by the telco that it intends to begin commercial deployment of 5G technology in Nigeria before the end of 2020.
Despite the fact that MTN has not been able to launch its 5G service in the country, its 4G network now covers 65.1 percent of the population, an increase from 60.1 percent in December 2020, according to the company.
In addition, the company has set aside N600 billion ($1.5 billion) over the next three years for the construction of additional infrastructure. Nigeria, like South Africa, may soon see the deployment of 5G networks as a result of increased investment in infrastructure.
In conclusion
Despite the fact that MTN currently operates in approximately 21 countries around the world, Nigeria continues to be one of the company's largest and most profitable markets.
The company says it will commemorate its 20th anniversary in the country by completing the construction of an ultra-modern head office in Nigeria that will be powered entirely by renewable energy.
