
South Africa-based operator group MTN announced it was making contingency plans related to the use of ZTE equipment in its networks, following sanctions slapped on the Chinese vendor by US authorities.
Mobile
World Live
reports that during the company’s Q1 earnings statement, CEO Rob
Shuter said the company was “assessing both the impact and contingency
planning” following the order issued by the US department of
commerce last month.
US
penalties on the Chinese vendor relate to statements made during an
investigation into ZTE breaking US laws on exporting goods to Iran –
a country where MTN holds a minority stake in the second largest
operator MTN Irancell.
The
Chinese vendor has also been under fire from authorities in the UK,
which branded the company’s network equipment a “security risk”.
Although no formal ban was put in place, the country’s national
cybersecurity agency warned operators against using its equipment.
While
none of the UK’s operators would confirm to Mobile
World Livewhether
they used – or were planning to use – ZTE equipment in future
network rollouts, MTN has made several public announcements on
partnerships with the vendor for a number of network rollouts.
During
MTN’s trading update, which provides top-line trends rather than
detailed financial data, MTN said it booked a 9 per cent year-on-year
increase in revenue across its markets in Q1. This was fuelled by
growing revenue from data services and increased earnings from mobile
money.
Data
revenue increased 27 per cent year-on-year across its markets, while
earnings from mobile money services grew 52 per cent compared to Q1
2017.
The
company offers mobile money services in the majority of its markets –
with the notable exception of its home market of South Africa.
In the wake of comments made in January stating MTN aimed to be
the largest bank in Africa, rumours emerged the operator was set to
revive the service in South Africa.
During
the first four months of the year, MTN further increased its
financial services play, expanding a deal with banking group
Ecobank and making a number of country -specific upgrades to its
service.
Shuter
also pointed to strong growth in its divisions in Nigeria and Ghana –
two units scheduled for IPO. The executive added the processes were
on track and both units should float by the end of the year.
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