5 reasons why MTN lost its sparkle (according to TechCentral)

The sparkle is gone.

This is according to Duncan McCleod, Editor of TechCentral.

The Money Show’s Bruce Whitfield interviewed McCleod, who gave the following five reasons for his claim that MTN has lost its sparkle:

  • The MTN Nigerian fine (its size, the lack of communication from MTN and worries about internal culture)

  • The departure of the group CEO and whether Phuthuma Nhleko is really the right man for the job

  • High-growth markets have turned out to be risky (Nigeria, Iran, Sudan, Syria, etc.)

  • Instability at MTN South Africa (CEO turnover, lost market share, strike, etc.)

  • Lack of expansion into new markets (e.g. it’s lost the bid for Myanmar)

Scroll down for quotes from the audio below.

This is the largest fine imposed on a telecommunications company ever, by a very large margin.

Duncan McCleod

The concern is that MTN simply ignored an instruction from the regulator.

Duncan McCleod

Some analysts believe Nhleko isn’t the appropriate candidate to clean out MTN.

Duncan McCleod

Nhleko wasn’t afraid to go into risky markets. MTN is now operating in places such as Afghanistan and Syria. However, this risk-taking has paid off handsomely for MTN in the past.

Duncan McCleod

Iran appears to be very successful although sanctions meant they weren’t able to repatriate earnings.

Duncan McCleod

Vodacom reacted much faster than MTN to Cell C’s cut in prices.

Duncan McCleod

Under the new CEO there seems to be some stability returning to MTN.

Duncan McCleod

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