MTN does not necessarily need 5G now – CEO

Stephen Blewett explained that, out of the 28.5 million active devices on the MTN network, only one million are 5G-enabled and that makes it difficult to make a business case for 5G now.
MTN does not necessarily need 5G now – CEO

The CEO of MTN Ghana, Stephen Blewett has said that the telecoms giant will be happy to have a 5G network but they do not necessarily need it now because it is difficult to make a business case for it.

Stephen Blewett explained that, out of the 28.5 million active devices on the MTN network, only one million are 5G-enabled and that makes it difficult to make a business case for 5G now.

Stephen Blewett, MTN Ghana CEO (left), being interviewed by Emefa Apawu (right) from Joy News

He was speaking at his maiden media engagement, dubbed “A Time with Stephen” to mark his first anniversary as CEO of MTN Ghana.

“Do we want 5G, yes! Do we need it now – not necessarily…even if we get 5G today only one million out of our 28.5 million customers will use it,” he said.

He argued that currently, a good 4G network still places MTN ahead of competition because an overwhelming majority of their customers are between 3G and 4G.

The CEO however noted that going forward, 5G will help to ease the pressure on the MTN network so they will join any 5G model based on what the government policy direction is.

Speaking of government policy, the previous government awarded a license to Next Generation Infrastructure Company (NGIC) to build and operate Ghana’s first open access network for both 4G and 5G, to enable a concerted rollout of 4G and 5G nationwide by all telecom networks. This is also to ensure nationwide accessibility to and affordability for all.

So far, NGIC is done with both the primary and backup core networks and the Network Operations Center (NOC), all of which have the inspected and passed as satisfactory by the National Communication Authority (NCA).

Now Telecel Ghana and AT Ghana have both committed to the integrations and engagements are ongoing with the two.

Stephen Blewett said MTN has also had engagements with NGIC but there is no firm commitment from MTN on integration to the shared 5G network yet.

“From our perspective, however 5G plays out MTN will participate in someway, whether it is NGIC, or a hybrid or multiplex or whatever. We will be happy to be part of rolling that out or to be partners of any such arrangements. But we will wait for guidance from our ministry on that,” he siad.

Meanwhile, as the two other telcos are gearing up to roll out 5G networks possibly by June this year, the MTN CEO said the quality of service on their 4G network is improving gradually, and customers should expect a significant improvement between now and end of the year.

Techfocus24 gathered that MTN is currently negotiating with government for either of two things – spectrum for standalone 5G network or more spectrum to improve their 4G network, which has been showing signs of congestion, with frequent incidents quality of service challenges recently.

But the NGIC license is for 10 years and it is said to be a watertight arrangement that will make it difficult for the current government to make any other alternative or parallel arrangements outside of it without place  some financial burden on the taxpayer, which the economy, in its current state, cannot bear.

Meanwhile, some industry observers have also noted that it will do MTN’s reputation a great good, as the market leader, to join the shared 5G network under the open access arrangement, particularly after all the industry players, including MTN, have preached so loudly about the need to create a shared network for the concerted development of the entire ecosystem.

Again, there have been suggestions that MTN is overlooking and underestimating the immediate opportunities the open access offers, particularly in expanding their 4G access and Fixed Wireless Access (FWA), which could drive significant value for MTN, without them having to go directly to the regulator for additional spectrum.

Source: techfocusa24.com 

5GMTN GhanaNGICStephen Blewett