• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

Loading...
See More

MTN warns lower call rates to hit revenue

Nov 10 2010 12:47 Reuters & I-Net Bridge

Related Articles

Nhleko to step down from MTN

MTN CEO to step down

New CEO may hasten MTN move

MTN boosts subscribers

MTN boosts subscribers

MTN BEE offer 1.7 times subscribed

 
Cape Town - Africa's biggest mobile operator, MTN Group [JSE:MTN] said it expects lower mobile termination rates to cut 9% from its revenue next year.

MTN hopes to compensate for the lost revenue by boosting its market share and data services, Karel Pienaar, MD for MTN South Africa, told Reuters on the sidelines of an African telecoms conference.

"We will see an impact; this year we've seen a 9% decrease in revenues from MTR (mobile termination rates) and we will see a similar decrease next year," he said.

The cutting of fees cellphone companies charge to handle calls from other providers is likely to hit earnings at domestic carriers.

MTN's rival Vodacom said this week the lower rates had an R800m impact on its first-half revenue.

MTN has also joined the growing chorus of operators singing the praises of the smartphone as a growth driver in the local telecoms industry.

Pienaar told the AfricaCom conference: "Smartphones will drive growth. Smarthphones will account for 60% of total handsets shipped into South Africa by 2014."

Pienaar's comments follow those of Vodacom CEO Pieter Uys earlier this week.

Announcing the group's first-half results, Uys said smartphones would drive demand for mobile data. He said that 20% of all new handsets sold by the group were smartphones.

Pienaar pointed to a "paradigm shift" in how people were using handsets.
 
"Mobile operators need to claim back the power of the SIM in providing multi-point offerings."

He added it was important to continue to focus on quality of speed, coverage and latency to retain customers in the face of rising competition.

"Latency is a key driver; it will unlock experience for the customer, to get them to use more data services."
 
Pienaar said the industry would see more sharing infrastructure deals, "not only sharing of base towers, but fibre-optics".

He noted that of the group's 6 600 sites, more than 2 500 were shared with partners.
 
"It's the only way to bring costs down," he said. On data revenue, Pienaar said: "It's a volume game."
 
He also pointed to growth opportunities in the lower end and rural segments for the group.

 

 

mtn group  |  cell phones

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
14 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...