By Silvia Nyambura
Over the past few months, telecom Giant MTN has made headlines for all the wrong reasons ranging from data bundle issues to Mobile Money Fraud. In this interview, the company’s CEO Brian Gouldie puts into perspective what this has meant for MTN and maintains his game plan for 2015 is still intact.
You came in less than a year ago with a high momentum and a clear strategy to drive the digital evolution. Part of your strategy revolves around investment in data, device and other focus areas. How far has MTN come in achieving this?
The reality is at the moment our competitive strategy is built on investment. We have got a very aggressive investment plan for 2015 and are looking at driving a very focused agenda. Data and Financial services are of key focus for us and there is a very close alignment between our financial services and telecom operations.
We invested in a new financial services platform last year. Mobile Money is almost a strong a brand in Uganda than ATMs and is the leading financial services company in all our 22 markets. We want to be able to offer more than just money transfer and payments but also provide savings.
In addition, we plan to build on our Corporate Social Responsibility (CSR) program focusing on provision of water, education and health care. This is our way of engaging with people and giving back to the society. We do not want to be deemed too corporate or too serious.
What is your perception of Uganda’s market so far?
I see big opportunity in data which requires investment. We have to make sure data is taken into all the major cities and towns so then investment in that respect is going to have to be bigger. We are not only a central region operator. Majority of high value people stay in Kampala so it’s easy to just be based here and get your return on investment since it would be a smaller investment. However there is potential in other towns which is why we want to structure products that will increase data usage across the country.
The past few months have not been the easiest for MTN. First there was the change in the provisioning system that led to data problems including non-activation and billing while not activated. Then there is a 2011 mobile money case that has come back to haunt you and the recent fine from the regulator over non-compliance. Give me a feel of what this has meant for you as a company.
We certainly have had a few challenges in terms of customer experience but I think one thing I am really proud about is how the leadership team engaged with the customers in acknowledging the problem. The data bundle challenge was not an easy one in fact we had to give the money back to the customers worth Ushs 738 million which is a substantial amount. The good thing is we have fixed the problem.
What about the fraud case?
In 2011 there were people we actually prosecuted internally in line with fraud. The Director of Public Prosecution however took it over as a criminal case. We have been supportive of the criminal justice system in light of the fact MTN employees were involved. It is unfortunate we are getting a bad reputation from it when essentially we should be getting a good one because we are helping with dealing with corruption and fraud. The way forward basically is that we have to persevere and be resilient. It is a path we have to walk. As a leading operation we have to stand up to the tests so it is important that we support these processes. Eventually the truth will prevail.
What should be done to curb mobile money scandals in the industry?
All this I believe came about because of a function of the systems we had at the time. However the fraud is conducted by people so I suppose you are only as good as the people that are managing and controlling what you have. We have done a lot of work though through the upgrade last year to improve security and customer experience.
You have been vocal about the industry’s unsustainable competitive environment. What is your role/strategy to make it sustainable as the biggest player?
I am of the view that the market will continue to consolidate. It is not very feasible that you can have 8 operators. There are markets twice or 3 times the size of Uganda but have 4 to 5 operators. I certainly do see ongoing consolidation. The more uncertainty you have in an economic environment the less investment you have and we need certainty to have a return on investment.
What is your assessment of the regulatory environment?
I have had engagements with the Minister for Information and Communication Technology John Nasasira. He has written a policy document which essentially is a road map for the industry. Most of the time we forget the role of the ministry is the critical one and my impression is he is doing a great job to structure the industry. This will create a sustainable environment for both the regulator as well as the operators to work in.
Going by how much Airtel has been engaging in lots of activities, they seem to be eyeing the number one spot. Are you scared of being toppled?
All I can say is good luck. Like I indicated earlier we are playing our own game and are very focused on what we are doing. I believe if we are actively engaging our customers and we add value to our services we will continue to grow. MTN must survive because we are the best at what we do, we do not survive because the competition is there.
What would you like to be remembered for by the time you are done with Uganda?
I have been with this company for 20 years and my experience has been transformational. I have been blessed to have worked on projects that have transformed countries in South Africa and Nigeria. I am going to be part of a project that transforms Uganda in a different way. I do see myself as a pioneer I have always been able to embrace the unknown. In a small way I have contributed and working for this company has given me a huge opportunity to change.


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