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In its early days, MTN faced a significant challenge. The South African telecoms landscape was dominated by an entrenched provider, whose suppliers were firmly aligned with the established order, creating a less than welcoming environment for newcomers. MTN needed a partner who shared their vision for a more competitive and dynamic future – a collaborator who wasn't tethered to the old guard, one who could help them disrupt the status quo.
At the time, American suppliers, with their analogue background, were lagging behind in the digital revolution. This narrowed the field to two main contenders: Nokia and Ericsson. Ultimately, it was Ericsson's unwavering commitment to MTN's bold vision, their proactive approach – demonstrated by the offer to set up a test network in Cape Town, and their global leadership in GSM technology – that sealed the deal. This marked the beginning of a decades-long collaboration that would shape the trajectory of both companies.
The path to securing a second network operator licence was not without its challenges. There was resistance from established players who were less than enthusiastic about increased competition. However, Christer Hohenthal, who led Ericsson South Africa from 1994 to 2001, with his deep understanding of the South African telecoms landscape, skilfully navigated these complexities, ensuring that MTN's voice was heard and its vision realised.
Christer vividly remembers the electrifying atmosphere in the lead-up to the 1994 elections. "During the test period in Cape Town and during the system roll-out after that, MTN got the licence and Ericsson the contract," he says. "It was a challenge to get the system up and running in record time but that was when the excellent relationship between MTN and Ericsson really started."
Karel Pienaar, at the time network group executive – MTN's first employee and a driving force behind its establishment – echoes this sentiment, highlighting the instrumental role of the Cape Town test network in securing support for a second network operator. "I took a case of new, mostly Japanese, phones to the politicians for them to play with – essentially to let them kick the tyres," he recalls. This clever tactic, combined with Ericsson's technical prowess, helped convince key stakeholders of the viability and necessity of a second player in the market.
The MTN-Ericsson partnership went beyond the typical client-supplier relationship. It was a true collaboration, forged in mutual respect, unwavering commitment, and a shared vision for progress. "Ericsson showed great commitment to us, and, when we went into the rest of Africa, they showed just how committed they were to making the investments work," says Pienaar. "As we expanded, they expanded with us."
Henrik Moberg, Ericsson's then-director of Africa and the Middle East, remembers Christer as a tireless advocate for MTN within Ericsson. "I had Christer in my ear all the time; always making sure that MTN got delivered first," he says. This level of dedication and support was crucial, especially as MTN ventured into uncharted territories across the African continent.
MTN's expansion into uncharted African territories, such as Rwanda, Uganda, and Cameroon, was made possible in no small part thanks to Ericsson's expertise in navigating challenging environments. Their collaboration with the Swedish export credit agency, EKN, helped mitigate risks and secure funding for these ambitious ventures.
Ericsson's contribution extended beyond hardware. Their proprietary software played a crucial role in MTN's 1996 launch of prepaid services, a strategic move that would revolutionise the African telecoms market and cement MTN's position as a leader.
The MTN-Ericsson partnership has been a remarkable journey, characterised by bold decisions, mutual support, and a relentless pursuit of progress. This enduring collaboration has not only benefited both companies but has also played a significant role in shaping the African telecoms landscape.
