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.
Tunisiana’s 3G bid declined (Tunisia)
Telecom operator Tunisiana’s bid for the 3G and fixed licence has been declined by Tunisia’s ICT (Information and Communications Technology) Ministry, according to a report by Biztech Africa.
As per the report the Minister of Information and Communication Technologies, Mongi Marzouk, said Tunisiana had offered to purchase the landline license for $ 23.38 million and the 3G license for $ 81.2 million. The Ministry earlier accepted the company’s proposed terms for network quality.
The report reveals that while the Ministry declined to specify what bid it would accept, it pointed out that Orange Tunisia had paid $ 179 million in June 2009 for a similar package with the option of an exclusive 3G licence for one year.
Tunisie Telecom acquired its 3G licence in 2010, for $ 75.3 million. Tunisiana has indicated that it may revise its bid.
O2 partners with McDonalds for WiFi service (UK)
O2 has announced that it has secured a new five year deal to provide the free wifi available in McDonald’s UK restaurants. The partnership will see McDonald’s 1,200-strong restaurant estate switch to O2 Wifi in time for this summer’s festivities.
O2 was the first, large fixed or mobile operator to offer genuinely free, simple and fast wifi for all and McDonald’s has been a pioneer in the provision of free, mass wifi since 2007. In January 2012 the restaurant chain became the first company to gain accreditation from Mumsnet as a Family Friendly Public Wifi provider.
Supported by O2 Wifi, McDonald’s customers will be able to access a free, fast and easy-to-use service. They only need to sign-up once and can then use the simple and secure service in any McDonald’s restaurant, or any of O2’s Wifi hotspots. The new deal strengthens the existing partnership that spans both mobile and services offered through O2’s media business.
Gavin Franks, MD of O2 Wifi said that a year ago they set out their ambition to transform public wifi in the UK by offering a fast and reliable public wifi connection that is genuinely free for all, no matter which mobile or broadband provider they are with. This announcement builds on the significant partnerships already secured by O2 Wifi in the past 12 months, enabling millions of people the length and breadth of the UK to access the internet for free whilst on the move.
Mark Fabes, IT Director, McDonald’s UK said that when we launched their wifi service in 2007 McDonald’s became the UK’s biggest provider of free wireless internet access. Since then usage has soared, with growing numbers of professionals making use of the restaurant wifi for business meetings and remote working, as well as families and individuals being able to use the network to check emails, shop online or keep up to date with the latest news.
Further, recent figures showed that a staggering 750,000 McDonald’s customers are logging on in the restaurants each month and McDonalds is always looking for ways to improve customer experience. For the 3 million people served in these restaurants each day they believe that O2’s mobile expertise and enhanced quality of network connectivity will deliver a fast, safe and secure service for customers to use when they visit the restaurant.
Access to O2 Wifi hotspots is through a simple sign-up process and will be free to both O2 and non-O2 customers. All hotspots will be premium public hotspots, as opposed to using residential connections with limited bandwidth.
This is the latest in a series of new partnerships for O2 Wifi which includes leading operator of restaurants and pubs, Mitchells and Butlers; high street department store group, House of Fraser; restaurant chain, Tragus, Westminster Council and the Royal Borough of Kensington and Chelsea. In 2012, O2 Wifi has already announced an additional 3,000 UK hotspots which it has added to its network.
Airtel renews managed services contract with Nokia (Africa, India)
Leading telecom operator Bharti Airtel, has extended its managed services contract with Nokia Siemens Networks for an additional five years. According to company reports, the contract covers Airtel’s network in eight circles consisting of Bihar and Jharkhand; Kolkata; Gujarat; Maharashtra and Goa; Madhya Pradesh and Chhattisgarh; Mumbai; Orissa and West Bengal.
Under this five-year managed services contract, Nokia Siemens Networks will manage and maintain Bharti Airtel’s 3G and GSM networks as well as iWAN (internet Wireless Access Network), the operator’s enterprise broadband service. This next phase of managed services relationship will help Bharti Airtel achieve better network efficiency, simplify operations and deliver better quality services.
Sanjay Kapoor, CEO, India and South Asia, Bharti Airtel has said that India started its journey of transformation from voice to data with the deployment of 3G.The data story in the country has just begun and they will witness increasing complexity due to multiplicity of network layers specifically when serving data. It is imperative for any service provider to have a complete end-to-end view to manage voice and data services. This initiative is in line with their strategy to create ubiquitous networks for offering enriched customer experience. Nokia Siemens Networks has been their long standing managed services partner and they are happy to continue their association further.
Ashish Chowdhary, head of customer operations Asia and Middle East, Nokia Siemens Networks said this deal will allow Bharti to simplify processes and improve end-to-end network and service performance. More importantly, stringent key performance indicators ensure they’re helping Bharti Airtel deliver an enhanced subscriber experience.
Safaricom disputes Regulator Report into Network Quality
Kenya’s Safaricom has disputed a quality of service survey findings published by the telecoms regulator last week, claiming that its own internal tests show its network is performing better than the regulator claims.
According to the company, a self-administered test undertaken using a methodology benchmarked by international standards gave it score way above what the industry regulator accorded it.
According to CCK previous reports, a countrywide Quality of Service (QoS) assessment on all the four mobile service providers gave Airtel the number one spot after it passed seven of eight parameters it used in measuring quality. Essar Telecom’s Yu brand was second, with compliance in four areas. The assessment found the quality of service offered by Safaricom and Telkom Kenya was the most wanting, with the two firms getting a score of three.
According to Safaricom chief executive, Bob Collymore, they are surprised at the timing of this announcement given that Safaricom and CCK were in discussions over the methodology used in the study.
While acknowledging that its network had issues, the company accused CCK for the poor quality network, claiming that the regulator had turned down its request for increased frequency spectrum that would increase capacity of its GSM network.
Collymore added that nonetheless, they recognize the challenges affecting our network, and they are working to ensure that all our 16 million-plus customers enjoy superior communication services.
Ericsson to expand TMIB’s network in Bangladesh
TM International Bangladesh (TMIB), a telecommunications service provider in Bangladesh, has selected Ericsson to expand its GSM/GPRS network in the Dhaka and Chittagong areas.Under the agreement, Ericsson will provide core and radio networks, and a range of telecommunication services, including installation, commissioning, optimisation and tuning. The deployment has started and is expected to be completed by the end of the year.Apart from being able to accommodate new subscriber growth on its network, the expansion is expected to provide TMIB’s subscribers better end-user experience in terms of network quality and performance.
TMIB operates in Bangladesh under the brand Aktel, which is a joint venture between Malaysia’s Telecom Malaysia International and the local AK Khan Group.
Source-http://www.digitalmediaasia.com
