Vodafone climbs over to become Africa's biggest phone company ahead of MTN

MTN Group's six-month old battle with Nigerian regulators over payment of a giant fine has cost the telecom giant its Seven-year place atop the list of Africa's highest valued telecommunications operators.

According to a Bloomberg report, MTN Group has lost its place as Africa's largest phone company to Vodacom.

For the first time in seven years, MTN's market capitalization at the close of business on Thursday stood at 238 billion rand ($15.8 billion), while Newbury, England-based Vodafone owned Vodacom's market capitalization stood at 248 billion rand, highlighting the first time the rankings will see another company usurp MTN since 2009 when Vodacom listed.

Since October 26, when news of the record $5.2 billion fine imposed on MTN by Nigerian regulators first broke, MTN's shares have declined by 32%.

Despite the fine being reduced to $3.9 billion, the South African-based company is still yet to agree to a payment. In light of the scandal, CEO Sifiso Dabengwa had to resign in November, with ex-CEO Phuthuma Nhleko coming in a replacement. Vodacom shares gained 12% in that same period.

“The problem is all the uncertainties hanging over MTN’s head,” Irnest Kaplan, a telecommunications analyst at Vunani Securities, said by phone from Johannesburg, according to Bloomberg. “The market needs to know who the next CEO will be, but most importantly the market needs to be updated on the fine negotiations and if there has been any progress. Markets do not like uncertainty.”

This may be a short term drop for MTN but we will have to wait till Monday, when Vodacom reports its earnings to determine how far MTN has dropped behind its rival.