News on MTN the gaint in telecommunication industry in Nigeria is on the air again. MTN is facing new pressure on its dominance of its biggest market by subscriber base, Nigeria, after rival operator Etisalat signed a $1.2 billion refinancing contract loan with 13 Nigerian banks to bolster its network in the region.
“The company plans to use the proceeds to refinance the existing commercial medium term debt of $650 million and continue its network rollout,” Etisalat said.
By 13h00, shares in MTN declined 2.53% or 4.67% to R179.83 on the JSE. The All Shares Index declined 0.60% to 41,566 points. See below table after the cut...
Earlier this month, Nigeria’s telecoms regulator ordered MTN to charge customers the same rate whether calling rival operators or other MTN users, in order to reduce its market dominance.The NCC said that MTN charged its customers three times more to call rival operators than for calls between MTN users.
“This is indicative of the likely establishment of a calling club for MTN subscribers,” the NCC said.
And also in May, Nigeria president, Goodluck Jonathan visited South Africa, meeting with MTN Group president and CEO, Sifiso Dabengwa. And while MTN would not disclose the meeting’s agenda, it was speculated that MTN’s monopoly was discussed. TJLB Readers what do you think?
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