MTN subscriber base up by 3.7 percent in December quarter (Africa)
MTN Group recorded 170,573,000 subscribers at 31 March 2012. This is a 3.7 percent increase for the quarter from 164,501,000 subscribers recorded at 31 December 2011. The Group delivered a satisfactory performance notwithstanding continued high levels of competition in key markets.
Consistent with the new management structure, this commentary includes detailed analysis of each of the five larger operations (MTN South Africa, MTN Nigeria, MTN Irancell, MTN Ghana and MTN Syria) and highlights from the rest of the operations. However, a schedule of subscriber and ARPU numbers for all operations is also given.
MTN South Africa contributed 13.3 percent to Group subscribers and delivered a sound performance in a mature market. It increased its subscriber base 3.2 percent for the quarter. The postpaid segment performed well, increasing its subscriber base by 4.4 percent mainly due to attractive data propositions. The prepaid segment increased its subscriber base by 2.9 percent despite increased competition. This was attributable to competitive promotions including the continued success of MTN Zone through improved informal distribution channels. Blended ARPU declined 7.9 percent mainly due to a reduction in interconnect rates to 56 cents in March 2012 from 73 cents previously. Postpaid and prepaid ARPU decreased 6.7 percent and 8.1 percent respectively.
MTN Nigeria contributed 25.1 percent to Group subscribers and increased its subscriber base by 3.0 percent for the quarter. Net connections of 1,258,000 were negatively impacted by a nationwide strike in January and aggressive competition. Slower net connections at the beginning of the year resulted in a marginal loss of MTN’s share of the market. However, corrective measures enabled the operation to increase network capacity and improve net connections later in the quarter. No clarity has yet been provided on the deadline for SIM registration. The harmonizing of MTN Nigeria’s database of registered subscribers with the NCC database is in progress. Local currency ARPU declined by 1.1 percent for the quarter.
MTN Irancell contributed 21.6 percent to Group subscribers. On a proportional basis, reflecting MTN’s 49 percent ownership, its contribution was 11.9 percent. It continued to deliver a solid performance growing its subscriber base by 6.2 percent and increasing its share of the market for the quarter. This was mainly due to attractive value propositions including 2-in-1 SIM packs and various seasonal promotions. At the end of March, MTN Irancell recorded 213 000 WiMax customers. Local currency ARPU increased 3.7 percent due to improved network quality. The third mobile operator is expected to launch commercially in the second quarter of 2012.
MTN Ghana contributed 6.1 percent to Group subscribers, increasing its subscribers 2.3 percent for the quarter and maintaining market share in a competitive environment. This was due to attractive promotions as well as the implementation of a regional structure to better manage sales and marketing. Local currency ARPU increased by 3.4 percent mainly because of revised value propositions. The deadline for SIM registration was 1 March 2012 resulting in a disconnection of 21,237 subscribers representing 2 percent of the subscriber base. The sixth mobile operator had its commercial launch at the end of April 2012.
MTN Syria contributed 3.3 percent to Group subscribers. Its performance continued to be hampered by civil unrest in the country, which resulted in a reduction of subscriber numbers of 23,000 subscribers and a decline in local currency ARPU of 8.5 percent.
The rest of MTN’s operations contributed 30.5 percent to Group subscribers, representing an increase in users of 3.5 percent. MTN Uganda increased its subscriber base by 1.2 percent as the market slowed due to SIM registration. MTN Sudan continued to show good progress, increasing its subscriber base by 5.3 percent for the quarter attributable to attractive value propositions and improved distribution. MTN Cameroon also performed well and increased its subscriber base by 9.8 percent. This was attributable to a more aggressive informal distribution strategy and attractive value propositions. MTN Cote d’Ivoire increased its subscriber base marginally by 0.5 percent because of the removal of 200,000 non revenue generating SIM cards and lower gross connections due to SIM registration.
The Group continues to prioritise key initiatives to better manage the business as consumer trends evolve and competition intensifies. Data and related products and services continued to gain momentum. Data, including SMS, contributes 14.4 percent to revenue, driven mainly by MTN South Africa. Mobile Money has now been launched in 13 countries. At the end of March 2012, MTN had 6.2 million Mobile Money subscribers. Initiatives to optimise costs continue to be rolled out and the centralized procurement initiative is showing solid progress.
Network quality and capacity remains a key imperative for the Group. The majority of the operations continued to aggressively rollout network and achieved satisfactory progress for the quarter.
MTN defends its operations in Iran (Iran)
Leading telecom operator in South Africa, the MTN Group, has defended its operations in Iran after a series of allegations made by rival operator Turkcell in $ 4.2 billion lawsuit.
As reported earlier, Turkcell had alleged that MTN secured licences in Iran via bribery and corrupt practices. However, Sifiso Dabengwa, MTN’s chief executive, has defended the Group claiming that Turkcell’s own failures to meet Iranian legal and commercial requirements resulted in it not winning a licence.
As per a statement made by the company, Dabengwa said that any suggestion that Turkcell’s failure to obtain the licence was as a result of any alleged corrupt or improper practices by MTN is unfounded. He added that the allegation that MTN influenced South African foreign policy with regard to its armaments and nuclear position is simply ludicrous and has already been dismissed by the South African government.
Over 21 percent subscribers of the South African Group’s entire subscriber base if from Iran.
MTN denies bribery allegations by Turkcell (Iran, Africa)
The bribery claims alleged by Turkcell on the MTN Group, saying that the South African group bribed officials in Iran for telecom licences have been denied by MTN. According to reports, Phuthuma Nhleko, former chief executive officer of MTN Group Ltd., has said that he can state quite categorically that during his tenure as group CEO of MTN, no bribes were authorized or paid by the MTN Group to any South African or Iranian government officials to secure the mobile license in Iran. He added that the allegations made by Turkcell are far-fetched and without foundation.
Nhleko also said that MTN’s conduct was not unlawful or corrupt and MTN was certainly not in a position where it could influence or fetter the decisions made by the South African government or any other sovereign state.
As reported by Wireless Federation earlier, Turkcell Iletisim Hizmetleri AS alleged in a lawsuit that the MTN Group Ltd. had bribed officials, arranged meetings between Iranian and South African leaders, and promised Iran weapons and United Nations votes in exchange for a license to provide mobile-phone service in the Islamic Republic. Turkcell is seeking $4.2 billion in damages through this claim.
Western Union and MTN Uganda launch Mobile Money transfer service (Uganda)
The Western Union Company and MTN Group have announced the launch of a mobile money transfer service in Uganda, allowing MTN customers to send and receive money across borders using just their mobile phones for the first time.
The service marks the debut of an offering from Western Union that allows the more than 2 million customers of MTN’s mobile money transfer service, Mobile Money, in Uganda to add funds to their accounts that were sent through Western Union’s system. Senders send the funds as they normally would – either in-person at 450,000 Western Union Agent locations in 200 countries and territories, from www.westernunion.com in 22 countries or directly from a bank account in select countries. The receiver of the funds simply chooses to pull the transaction into a MTN Mobile Money account.
The new service also enables MTN customers to send money internationally with Western Union directly from their Mobile Money accounts for cash payout at Western Union Agent locations worldwide or to subscribers of select mobile phone companies with which Western Union has agreements.
Western Union and MTN also announced today that they will provide 9,000 branded mobile ‘Yellow Phones’ to Ugandans. Customers who receive these phones must already have an active MTN Mobile Money account or sign up for one in order to use the new remittance service. The phones will be given away via ongoing promotions throughout Uganda over the next few months.
Diane Scott, Executive Vice President, Chief Marketing Officer and President, Western Union Ventures, said that Western Union is changing quickly and they are leading the way in bringing international remittances to mobile subscribers around the globe. Further, their network of nearly half a million locations, their experience in moving money across borders, and their relationships with the world’s most successful mobile operators such as MTN, ideally position them to introduce many people to cross-border financial services.
Scott also said that the mobile money transfer service will unlock new economic opportunities for thousands of underserved consumers in Uganda, whose financial needs are not being met elsewhere. By deploying these powerful tools for sending and receiving funds – particularly in areas lacking financial infrastructure – Western Union and MTN are helping to create more self-sufficient local economies.
Christian de Faria, MTN Group Chief Commercial Officer, said that MTN Mobile Money has seen great success in Uganda. They currently have more than 2 million Mobile Money customers, and continue to grow exponentially. By joining forces with Western Union, customers can now receive funds directly in their MTN Mobile Money accounts quickly and easily. MTN looks forward to expanding this offering in new countries with Western Union.
MTN has deployed its Mobile Money service in 12 markets, including Ghana, Cote d’Ivoire, Cameroon and Rwanda. Following the launch of the Mobile Money transfer in Uganda, MTN and Western Union plan to introduce the service in other countries where Mobile Money is offered, and where regulation permits international remittance.
MTN Group’s subscriber base reaches 164.5 million (Africa)
South Africa-based multinational mobile telecommunications company MTN Group, has reported subscriber additions of 22.9 million for the year, taking its total subscriber base to 164.5 million. According to the company report, West and Central Africa (WECA) Region was responsible for 71.557 subscribers, followed by the Middle East and North Africa (MENA) region with 55.338 million subscribers and the South and East Africa (SEA) region contributed 37.606 million subscribers.
The total revenue for the Group stood at US$ 16.09 billion, up 9.7 per cent from the previous year, which was at US$ 14.53 billion. Data revenue was at US$ 1.07 billion while revenue generated from SMS was US$ 990 million.
Sifiso Dabengwa, Chief Executive Officer, MTN Group, said that the company will continue to look for opportunities for acquisitions around the world. The company is working towards improving customers experience by investing in network improvement, hiring experienced staff, providing quality service, improving distribution and brining on more value-added services, among other things.
MTN Group increases MTN Mobile Money presence in Zambia (Africa)
The MTN Group announced last week that its increasingly popular MTN Mobile Money service will now be available through the extensive MTN agent network and Banc ABC branch network in Zambia, further improving accessibility to financial services via the convenience of mobile telephony for thousands of Zambians.
According to a company report, in terms of the strategic partnership with Banc ABC, MTN customers will be able to load and withdraw money from their mobile phones using MTN Service Centres, MTN agents, Connect Stores and the Banc ABC branch network.
Christian de Faria, Group Commercial Officer, MTN Group, has said that the phenomenal uptake of Mobile Money in Zambia is a clear indication that an increasing number of Zambians are excited to finally have the ability to conduct financial transactions through their mobile phones.
MTN Mobile Money creates a safe environment for the banked and unbanked portion of the population to perform basic banking transactions. In some of the markets where the service is offered, customers are now able to pay their utility bills, among other transactions, using MTN Mobile Money. MTN has successfully deployed its MTN Mobile Money service in 11 other markets, including Uganda, Swaziland, Ghana, Cote d’Ivoire, Cameroon and Rwanda.
De Faria adds that the launch of MTN Mobile Money in Zambia is opening up plenty of exciting opportunities in terms of financial services inclusivity. For them, MTN Mobile Money is integral to their efforts to increase accessibility to financial services for people in their markets.
He added that the agreement with Banc ABC also confirms our commitment to continue exploring innovative ways to make our products as accessible as possible within the Zambian market.
The launch of the MTN Mobile Money service with Banc ABC will enable MTN subscribers to open a mobile money account at any of the bank’s 19 branches and 10 mobile banks across Zambia. Subscribers will, upon registration, be able to load and store electronic money on their mobile phones and use their mobile number as an account number.
says Abdul Ismail, Chief Executive Officer, MTN Zambia has said that the unique feature of MTN Mobile Money is that customers can send money to any cellphone user on MTN or other networks. This joint partnership with Banc ABC as an MTN Mobile Money agent will assist greatly in agent liquidity and providing cash-in and cash-out services for their customers.
MTN Mobile Money is currently being utilised by over 6 million customers across the MTN footprint, with over 2 million of those users in Uganda.
Zain selects UBS to sell Saudi unit
Kuwait’s Zain Group has appointed Switzerland-based financial service provider UBS to sell its Zain Saudi Arabia unit.
The Swiss company specializes in asset management and investment banking. The sale of the Saudi Arabian cellco, in which Zain holds a 25% stake, valued at US$756 million according to current prices, which has arisen following UAE-based Emirates Telecommunications Company’s (Etisalat’s) non-binding offer worth around US$12 billion for a 46% stake in Zain Group.
Etisalat already owns a controlling stake in Saudi’s second-placed mobile operator Mobily and its broadband unit Bayanat Al-Oula, so any transaction for Zain’s local assets would contravene local anti-monopoly regulations.
As per recent speculations, both Bahrain Telecommunications (Batelco) and South Africa’s MTN Group are in talks to buy the unit, although neither company has confirmed their involvement thus far.
Telekom will exit Nigeria CDMA handset business
Africa’s largest fixed-line operator, Telekom has been looking to exit its Multi-Links mobile business, one of four mobile operators using the CDMA technology platform in a market overwhelmingly dominated by the rival GSM standard.
Telkom recently launched a mobile business in the South African market, where it faces stiff competition from MTN Group, and its former unit Vodacom.
According to Jeffrey Hedberg, Telkom’s acting chief executive, selling the mobile unit in Nigeria was a top priority. There is a clear need to stop the bleeding in the CDMA business, and on the fixed side the company is in discussions with other partners; again about increasing country scale and minimizing their exposure.
According to Telkom, it had received a number of expressions of interest for the Nigerian business, which was bought for $330 million three years ago and incurred a US$37, 42 million operating loss in the six months to end-September.
Etisalat Nigeria expects 12 million user in 2011
Etisalat Nigeria is planning to spend up to $500 million on its network next year, as it looks to double its customer base to 12 million.
Etisalat is facing stiff competition in Africa’s most populous nation from South Africa’s MTN Group and India’s Bharti Airtel.
As per reports citing Steven Evans, chief executive of Etisalat Nigeria, he thinks that the company is still going to spend anything of the order of $400 to $500 million in terms of Capex, similar perhaps to 2010.
According to Steven Evans, the company has more than 6 million subscribers in Nigeria, and is aiming for 12 million by the end of 2011. But that will still put it at just a third of the size of MTN, which has 36.8 million users in Nigeria. Evans added that he expected the unit to break even in 2011 on an EBITDA basis.
