FACULTY OF SCIENCE AND COMPUTING

COURSE UNIT : MGT INFORMATION SYSTEMS

LECTURER : MR. NAMUKANGULA JUDE
YEAR : TWO
SEMESTER : ONE

GROUP PARTICIPANTS
S/ NAME REGNO SIGNATURE
NO
1 TUHAISE GEOFREY 23/2/222/D/065
2 KULABAKO 23/2/
SHAMIRAH
3 NAMUTAAYA 23/2/222/D/361
LATIFAH
TOTAL 3
BACKGROUND OF MTN UGANDA

MTN Uganda is the largest telecom company in Uganda, with 11.2 million subscribers,
accounting for 55 percent market share, as of 30 June 2017. By 31 December 2019, its
customer base had increased to 12.6 million customers. In March 2021, the Uganda
Communications Commission estimated the number of MTN customers in Uganda at 15
million, out of 28.3 million mobile network subscribers, thereby attaining a 53 percent
market share. In May 2024, MTNU registered her 20 millionth customer in the country. The
headquarters of MTN Uganda are located at 69-71 Jinja Road, in the Kampala Central
Division, one of the administrative units of the city of Kampala, the capital and largest city
of Uganda.

MTN Uganda is a subsidiary of MTN Group, a multinational telecommunications group

connecting approximately 232 million people in 22 countries across Africa and the Middle
East. In 2009, MTN Uganda introduced its mobile telephone-based banking product known
as Mobile Money. As of March 2015, MTN controlled 80 percent of the mobile money
market in the country.
PROBLEMS FACED BY MTN UGANDA

MTN Uganda, like other telecommunications companies, faces various challenges that can
hinder its productivity, sustainability, and profitability. Some of these problems include the
following:

Fraud and Security Issues

Internal collusion and fraud have been significant problems. For instance, a major mobile
money fraud case involved internal staff creating unauthorized e-money, leading to
substantial financial discrepancies. This not only cause a loss to the company but also affects
the public will or image of MTN Uganda. Cyber security threats which arise from increased
digital transformation and data usage, expose MTN Uganda to cyber security risks, including
data breaches, fraud, and cyber-attacks.

Regulatory and Compliance Issues

The Company has faced accusations of under-declaring sales, leading to public revenue
losses in tax revenue and adhering to Uganda’s evolving data protection laws and
international regulations is a constant challenge, requiring significant resources. For
example, In October 2018, the company's initial 20-year operating license expired. Due to
prolonged negotiations between MTN and the Ugandan government, the company has since
been operating on temporary short-term licenses not until in July 2020, when MTN Uganda
received an operator’s license for 12 years.

Ethical Marketing Practices

MTN Uganda has been challenged by ethical marketing practices, impacting customer
satisfaction and trust. And this has caused the company to spend more money in a fight to
provide high quality services such fast network connections which involves establishment of
telephone masts in different parts across the country.
Technological Infrastructure

Keeping up with rapid technological advancements and maintaining a robust, secure, and
efficient network infrastructure is a continuous challenge that requires a lot of financial
support in order to level up with competitors that deploy various technological advancements
in day to day business processes.

Network Infrastructure Challenges

As the number of mobile users grows, network congestion becomes a problem, affecting
service quality, call drops, and data speeds. Extending services to rural and underserved areas
is difficult due to the high cost of infrastructure, poor electricity supply, and challenging
geographical terrain. And besides that, maintaining and upgrading telecommunications
infrastructure is costly, especially with the rapid evolution of technologies like 5G.

Pressure from environmental authorities like NEMA in Uganda

Running telecommunications towers and maintaining vast networks are sometimes non-eco-
friendly and therefore can have a negative environmental impact, especially in terms of
energy consumption and carbon emissions. For example, Operating telecom infrastructure
such as telephone masts and data centers in regions with unreliable electricity supply often
requires generators that in return increase the carbon blueprint.
TECHNOLOGIES TO IMPROVE PRODUCTIVITY, SUSTAINABILITY,
AND PROFITABILITY OF MTN UGANDA

To address these challenges and enhance its operations, MTN Uganda can leverage several
technologies are some of them are discussed below:

Fifth generation (5G) Network

The 5G network is the next generation of mobile internet connectivity, offering faster speeds
and more reliable connections on smartphones and other devices than ever before.

Implementing a 5G network can significantly improve data speeds, reduce latency, and
enhance overall network efficiency. This will not only improve customer experience but also
support new services and applications, driving revenue growth and hence increasing the
profit margin for MTN Uganda

Cloud Solutions

Cloud computing involves delivering various services over the internet, including data
storage, servers, databases, networking, and software. Utilizing cloud-based platforms for
data storage, management, and processing can enhance scalability and reduce IT costs. Cloud
solutions also support disaster recovery, enhanced data backup and recovery options,
business continuity and this can lead to the achievement of remote access and data retrieval
flexibility.

Unified Communications

Unified communications involves integrating multiple communication methods within a

business, such as voice, video, messaging, and conferencing, into a single platform.
Integrating various communication tools such as voice, video, messaging, and conferencing
into a single system can improve collaboration and productivity. MTN’s solutions like VoIP
services and virtual meeting platforms are the best examples to be considered. This also
enables the company to reduce the need for multiple communication systems and associated
costs.
Internet of Things (IoT)

Internet of Things refers to the network of physical objects embedded with sensors, software,
and other technologies to connect and exchange data with other devices and systems over the
internet. IoT can be used to monitor and manage network infrastructure, optimize energy
usage, and improve service delivery. For example, IoT sensors can help in predictive
maintenance of network equipment, reducing downtime and operational costs incurred.

Artificial Intelligence (AI) and Machine Learning (ML)

Artificial intelligence and machine learning involve the use of algorithms and statistical
models to perform tasks without explicit instructions, relying on patterns and inference
instead. Artificial intelligence and machine learning can be used for predictive analytics,
customer service automation (e.g. chatbots), and fraud detection. These technologies can
help in identifying patterns and anomalies, improving decision-making and operational
efficiency. For example MTN Uganda has a chatbot called “Zigi”, a digital personal assistant
that automatically answer questions asked by the users.

Advanced Block chain Technology

Blockchain is a decentralized digital ledger that records transactions across many computers
in a way that ensures the data cannot be altered retroactively. Implementing advanced block
chain can enhance security and transparency in transactions, particularly in mobile money
services and other financial related transaction. It can help in reducing fraud and ensuring the
integrity of financial transactions carried out by MTN Uganda users.

Sustainable Practices

Sustainable practices involve adopting methods that reduce environmental impact and
promote long-term ecological balance. MTN Uganda can adopt sustainable practices such as
using renewable energy sources for their network operations, replacing fuel generators with
clean energy sources such as solar power and implementing water conservation initiatives.
These practices not only reduce operational costs but also enhance the company’s reputation
and compliance with environmental regulations and standards.

CONCLUSION

By leveraging these technologies, MTN Uganda can address its current challenges and pave
the way for a more productive, sustainable, and profitable future. It can also position itself as
a leader in innovation and sustainability in the telecommunications industry in Uganda and
the entire East African Community.
REFERNCES
Wikipedia, free Encyclopedia https://en.wikipedia.org/wiki/MTN_Uganda

MTN Uganda official website www.mtn.co.ug

Kenneth C. Laudon and Jane P. Laudon Management Information Systems