The MTN Group continues to evolve its operating model to bolster its competitiveness in the market. As part of this process, it started implementing a new business model to outsource its network operations three years ago in a bid to improve efficiency and reduce rising network maintenance costs.
In February 2015, MTN Group appointed ZTE Technologies as the Managed Services provider for MTN Uganda. Under the Managed Services model MTN Uganda will benefit from shared value by having the new Network partner take over the management and enhancement of its highly evolved network processes capabilities which is expected to significantly enhance the delivery of a superior Customer Experience.
In this transaction there are no planned job losses as all employees in the impacted Network environment will be taken over by ZTE technologies with the same employment terms and conditions. The process of migrating the said staff to ZTE involves dissolution of their employment contracts with MTN and the offer of new contracts with ZTE.
The approximately 140 staff to be affected have been informed of this transition and oriented about their terminal benefits and their immediate re employment by ZTE. In line with the requirements of the Labour Laws of Uganda, the Labour Commissioner has also been notified of the impending transmission of staff and been appraised of the processes that MTN Uganda has undertaken in compliance with Legal and Contractual requirements. Contrary to what has been reported in some Social and Print media, there will be no job cuts as all staff are to be immediately re employed by ZTE and all statutory, contractual and terminal benefits will be paid with a full guarantee of immediate re employment.
The Network Outsourcing Model has been successfully rolled out in other markets in which MTN operates. These include South Africa, Nigeria, Iran, Ghana, Cameroon, Sudan, South Sudan, Guinea Conakry, Zambia, Afghanistan and Cyprus, to ensure MTN’s long term competitiveness and sustainability.
Gouldie, CEO of MTN Uganda said, “As the telecoms market matures, it is becoming essential that every effort is made to drive efficiency in order to manage our cost structures and create mechanisms for strategic advantage. This is critical to remain competitive as technology evolves. MTN is utilizing its strategic partnerships in order to drive this effectiveness and has started an ‘outsourced’ based approach by the appointment of strategic partners to manage key operational areas. This will be an ongoing focus on how MTN can differentiate itself across multiple operational environments to provide a differentiated experience to its customers.