South African Mobile Operators BTown Heavily in Network Infrastructure Over 2022

In contrast to its South African counterparts, mobile network operator MTN significantly invested R15.3bn in its network infrastructure over the past year, according to recent MyBroadband reports. The runner-up was Vodacom, who spent an impressive R11.2bn in the same period, followed by Telkom at R3.8bn.

However, Cell C, plagued by financial challenges, could only afford to invest R224mn, a tiny figure compared to the expenditures of MTN and Vodacom. This amount represents a significant drop from previous figures - the company cut its network Capital Expenditure (Capex) from R2.8bn in an earlier period.

To adapt to these challenges, Cell C opted for a new strategy, partnering with the two giants rather than competing directly with them in network spending. This shift culminated in a recent network migration and formal agreements with MTN and Vodacom on network coverage provision.

These agreements have removed the need for Cell C to maintain and expand its own network infrastructure, helping the firm focus more on stabilising its financial situation. However, some of the consequences include decreased network independence and control.

These investments by MTN and Vodacom also include significant expenditures on backup power systems and security for their network towers. In an effort to combat the challenges brought by Eskom's load-shedding, these mobile network operators rolled out generators and battery backups to ensure uninterrupted service during power cuts.

The investment by MTN was hailed as a wise move as the company maintained its reputation as South Africa's best mobile network for the past year. With their massive network capex, MTN had the highest average download speed and provided high-quality, reliable coverage in metropolitan areas across the country.