Johannesburg - Telecommunications operator MTN
Group on Thursday said that its South African subscriber base declined from
17.231m at the end of June 2009 to 16.419m at September 30, as
a result of the implementation of the Regulation of Interception of
Communications and Provision of Communication- Related information Act
(Rica).
The group reported subscribers up 5% at 108.466m for the quarter
ended September 30.
Subscribers for the year to date were up 19.6%, it said.
"South Africa's subscriber base declined from 17.231m at the end
of June 2009 to 16.419m at September 30. The main reason for the
movement is the significantly lower number of gross connections following
the implementation of Rica on August 1.
"Given the current market uncertainty following the Rica implementation
there are challenges with South Africa achieving its revised target of zero
net additions for the full year," MTN said.
MTN pointed out that South and East Africa (Sea) region contributed 23%
(June 2009: 25%) of its total subscribers while West and Central Africa
(Weca) and Middle East and North Africa (Mena) contributed 46% (June 2009:
46%) and 31% (June 2009: 30%), respectively.
"The Sea region increased its subscriber base by a very modest 0.5% for
the quarter. This was primarily due to the disappointing negative movement
of the South Africa subscriber base, which contributes 64% to the region."
"Uganda increased its subscriber base by 11% in the quarter following the
continued success of MTN Zone, which now constitutes 95% of the total
prepaid base."
"The Weca region increased its subscriber base by 5% for the quarter
driven mainly by Nigeria, which accounts for 58% of the region's
subscribers, the mobile group said."
Nigeria recorded a 5% increase in its subscriber base to 28.751m
"mainly due to continued network rollout, innovative product offerings and
the effectiveness of the distribution channels implemented earlier in 2009".
"Ghana maintained its market share and increased its subscriber base by 2.6%
despite aggressive competitor activity. Both Cameroon and Cote d'Ivoire
increased their subscriber bases by 4% and 5% to 4.186m and 4.210m, respectively," it said.
The Mena region recorded a 9% increase in subscribers for the quarter,
attributed in the main to continued growth from the Iran operation, which
contributes 62% to the region's subscribers and increased its base by 8% to
20.702m.
Iran's growth was attributable mainly to expanded network coverage and
continued promotional activity. "Syria increased its subscriber base by 13%
to 4m well above expectations. Afghanistan, although a relatively
smaller operation, has been steadily contributing positively to the region's
growth and has gained No 1 position in the market from No 3 at the beginning
of 2009," the group said.
MTN said it had revised its subscriber net addition guidance for the
year for South Africa to zero and for Syria to 550 000 while other
individually disclosed country guidance remains the same. MTN expects to
achieve the total group subscriber net addition guidance for 2009 of 22.600m.
"MTN South Africa's blended average revenue per user ("Arpu") increased
by 1% to R138. This was mainly due to the negative net connections of
750 000. US$ reported Arpu is now more in line with local currency trends,
indicating relative currency stability in larger operations including
Nigeria, Ghana, Iran and Syria. Arpus in Nigeria, Ghana, Iran and Syria have
remained relatively stable for the quarter, " the group concluded.
- I-Net Bridge