MTN Teams Up with Ericsson to Accelerate 5G in Africa, Share Price Resumes Uptrend
MTN Group’s stock (JSE: MTN) staged a 5% rebound after weeks of selling pressure, as technical support levels hold and investor focus shifts
Quick overview
- MTN Group's stock rebounded 5% after weeks of decline, supported by ongoing modernization efforts.
- Despite a strong start to 2025, the stock faced a 23% drop following uneven growth highlighted in the half-year earnings report.
- MTN is advancing its technology initiatives, including the deployment of Ericsson's cloud-native solutions and a commitment to AI language inclusion.
- Investor speculation about a potential merger with Telkom could reshape the South African telecom landscape and enhance MTN's market presence.
MTN Group’s stock (JSE: MTN) staged a 5% rebound after weeks of selling pressure, as technical support levels hold and investor focus shifts back to the telecom giant’s ongoing modernization drive.
A Strong Start, Then a Sharp Pullback
MTN entered 2025 with strong momentum, rebounding from years of underperformance as earnings and investor confidence improved. The stock climbed to a peak of R174 in early August, reflecting upbeat sentiment and healthy technical patterns.
However, enthusiasm waned after the company’s half-year earnings report, which highlighted uneven growth across key regions. The stock tumbled 23% from mid-August to mid-September, finding support around R133, near the 100-day simple moving average (SMA) that had also held in April’s correction.
MTNJ Chart Weekly – Can the 20 SMA Hold As Support?
Buyers Test the Waters Again
Encouraged by this support level, buyers stepped in, driving a 5% rally yesterday to close at R145—about 9% above the September low. While momentum has shifted back to the upside, bulls will need to push above several resistance levels to confirm a sustainable recovery.
Driving Innovation in Networks
Despite the stock’s volatility, MTN continued advancing its technology ambitions. The company deployed Ericsson’s cloud-native policy controller and packet core gateway, enabling a dual-mode 5G setup that improves responsiveness and accelerates new service rollouts.
According to Ericsson, MTN became the first operator in Africa to implement the Cloud Core Policy Controller (CCPC) in a policy and charging rules function (PCRF) configuration. This architecture, initially deployed on non-standalone 5G, supports real-time dynamic policy execution and lays the foundation for future-ready services.
AI and Language Inclusion Initiatives
In another strategic move, MTN pledged to help build datasets in African languages in response to Nigeria’s Minister of Communications, Dr. Bosun Tijani’s call for broader funding of AI research. Announced at the UN General Assembly’s Y’ello Chair Vodcast in New York, this effort aims to bridge linguistic gaps in AI technologies that often exclude Africa’s 1.5 billion citizens—critical for expanding access to AI-driven healthcare, education, and governance services.
Telkom Merger Back on the Table
Investor speculation is also heating up over reports that MTN and Telkom may resume merger talks before year-end. If successful, the combined company would serve nearly 63 million subscribers, consolidating MTN’s market presence in South Africa. Talks previously stalled three years ago after rival Rain proposed an alternative deal. The potential merger, if revived, could reshape South Africa’s telecom landscape and bolster MTN’s domestic growth prospects.
Regional Growth: A Mixed Picture
MTN’s H1 2025 results underscored contrasting regional performance:
- Nigeria led the pack, posting a 54% surge in service revenue, helped by more stable currency conditions that restored investor confidence in MTN’s most critical growth engine.
- South Africa lagged, growing service revenue by just 2.3%, challenged by intense competition, declining prepaid demand, and a tougher regulatory backdrop.
- Ghana held steady, showing strong after-tax profit growth and strengthening MTN’s footprint in West Africa.
This uneven growth trajectory has left some investors cautious, tempering what was initially a bullish narrative.
Outlook and Key Takeaway
MTN’s rebound suggests that technical buyers are returning, encouraged by its innovation pipeline and potential strategic moves like the Telkom merger. However, to sustain upward momentum, the stock will need to break above near-term resistance zones and demonstrate consistent earnings growth across all regions.
Extract: MTN’s recent 5% rebound signals renewed buying interest, but the telecom leader’s path forward hinges on stronger performance in its home market, smooth execution of its modernization plans, and clarity on strategic partnerships—factors that could define whether the stock’s recovery endures into year-end.
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