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MTN SA grows subscribers by 4%

Farzana Rasool
By Farzana Rasool, ITWeb IT in Government Editor.
Johannesburg, 28 Oct 2010

MTN saw a 4% increase in its South African subscriber numbers in the third quarter of this year, to 17 772 000.

Africa's biggest mobile company recorded 134 471 000 subscribers at 30 September, up from 129 214 000 at 30 June, across all its operations.

The company says this is a satisfactory result, particularly in light of aggressive competition and continued regulatory challenges in key markets.

“Most key markets continue to increase or maintain market share due to high quality networks, attractive value propositions and efficient distribution.”

The South and East African region, which contributes 22% to the company's subscriber base, increased its subscribers by 4.9%, to 30 081 000 for the quarter, mainly driven by growth in SA.

MTN says SA's growth was driven by continued growth in the prepaid segment, which added 616 000 subscribers - a rise of 3.9%.

“The success of the value proposition 'MTN Zone Mahala' and sustained positive brand awareness contributed to the operation's successful performance.”

Winners and losers

Nigeria, which is MTN's largest market, recorded a 5.1% increase in its subscriber base, to 36 841 000.

MTN reports that, as anticipated, Ghana subscriber numbers declined from 8 723 000 at the end of June, to 8 459 000 at 30 September, following the implementation of SIM registration on 1 July.

The operator says average revenue per user (ARPU) remained relatively stable in local currency when compared to June 2010.

“MTN SA's blended ARPU remained stable, at R152, compared to 30 June 2010. Prepaid ARPU continued to show an upward trend, although this was offset by the continued decline in postpaid ARPU.”

It adds that Nigeria and Ghana's ARPU remained relatively stable in both USD and local currency.

Related story:
MTN bullish on SA subscriber growth

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