MTN Group records over 24 million subscribers across its operations

MTN Group records over 24 million subscribers across its operations- 15 May 2006

The MTN Group today announced that it recorded a 55% year-on-year growth in subscriber numbers in its operations to 24 185 000. This represents a 4% increase since the last reported period ended 31 December 2005. Excluding operations acquired in the previous financial period, year-on-year subscriber growth is 43%.

The MTN Group’s international operations recorded a total of 13 986 000 subscribers - an increase of 8% since December 2005, now accounting for 58% of the Group’s subscriber base (31 December 2005: 56%). MTN Nigeria remains the biggest of the international operations, with its closing base of 9 036000 being 65% of the Group’s subscribers outside of South Africa.

MTN Group President and Chief Executive Officer, Mr Phuthuma Nhleko, says: “These figures reflect the development of the MTN Group into an increasingly diversified entity. The anticipated conclusion of our partnership with Investcom will accelerate this trend. We remain focused on improving performance in every operation and our regionalised management structure will support our efforts.”

MTN South Africa reports 10 199 000 subscribers, with post-paid acquisitions remaining strong while the pre-paid base declined due to expected churn following the highly acquisitive final quarter of 2005. The strong growth in the final quarter of last year was mainly due a pre-paid product promotion which has since been terminated, and net connections have since normalised.

Prior year’s ARPUs for the first quarter included the impact of annual revenue and annual average subscriber growth. The most important impact of the changed reporting basis is the decline in South African and Nigerian ARPU numbers. In line with expectations, South Africa recorded pre-paid ARPU of R87 and post-paid ARPU of R493. Blended ARPU reduced to R155. In line with the Group’s expectations, MTN Nigeria recorded ARPU of US$19, a 5% quarter-on-quarter reduction. When compared to the nine months ended 31 December 2005, the quarter’s ARPU dropped by US$3 or 14%.

MTN’s operations in Iran are still on target to launch in August 2006, within its licence commitment.

Adapted from MTN Press Release

High tariff, poor services

Extract from Telecom E-Review From Cyberschuul News

INDUSTRY WATCH

ANGRY WITH COST AND QUALITY,
NIGERIANS MAY BOYCOTT GSM SERVICES
FOR ONE DAY IN PROTEST

High tariff, poor services, inaccurate billing, and subscriber-care insensitivity on the part of GSM service providers constitute the grouse of mobile phone users in Nigeria and the Association of phone users has asked its member to boycott GSM services on Friday February 17, 2006 in protest. A similar one-day shut down of GSM services was carried out on September 19, 2003 when the only worries were high tariff, bad services and per minute billing. President of National Association of Telecommunications subscribers, NATCOM, Mr Deolu Ogunbanjo said the phenomenal growth in mobile services is not reflective of good service, subscriber-friendly products and reasonable tariff structure. Ogunbanjo’s call for the one-day boycott does not seem known to users outside his fellow activists apparently for reason of local press apathy.

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