Global subscriber base touches 150 million for the MTN Group (South Africa)
An announcement by the MTN Group states that its global subscriber base has surpassed the landmark of 150 million. An addition of 8.4 million customers during the initial four months of this year has largely been instrumental in pushing the numbers higher up. Apparently, the company’s presence in 21 countries helped.
On the other hand, the strengthening of the rand against the USD in addition to increased competition have been the major factors in posting only a marginal improvement as far as the Group revenue is concerned. Political unrest in Cote d` Ivoire has been instrumental in negatively impacted the group’s operational performance in the region; and to a less significant degree in Yemen and Syria.
In retrospect, if there had been no fluctuations in the exchange rate, revenue and earnings before interest, tax, depreciation and amortization could have been considerably higher. However, voice revenue has been the primary driver of the total revenue as non voice revenue contribution maintains a steady improvement.
In view of the slower than planned implementation in Nigeria, South Africa and Ghana, MTN’s capital expenditure was inferior than expected till the end of April. However, a commitment by the company in terms of a considerable amount of the capital expenditure previously anticipated has been reported. These pending projects are touted to gain momentum in the second half of the year putting the full year capital expenditure to a great extent in line with the original guidance.
MTN South Africa is being credited for continuing with a sound financial performance in a relatively mature market. So far, it is being continually noted the operation’s EBITDA margin showing a positive upwardly trend; lower selling and distribution costs and somewhat the controlled network operating costs are reported to be main factors.
MTN Nigeria saw a slight decline in revenue growth as increase in usage was neutralized in part by the decreased tariffs, initially rolled out in the form of a revised tariff plan in February 2011. On the positive side, EBITDA margins were characterized by robust figures at the same level as those reported in 31 December 2010 in spite of the multitude of competitive and operational challenges.
MTN Irancell sustained a commendable performance. Its local currency revenue grew on the higher side of 20 percent in comparison to the same period the previous year. Similar EBITDA margins as those of 31 December 2010 were reported. According to MTN, backed by its current spell of initiatives, it is in good stead to capitalize on value accretive opportunities and at the same time, taking care of the many risks and challenges it stands to face. MTN keeps on bracing up for a mature and evolving industry that has become more competitive by way of leveraging its scale, operational capability and intellectual capacity.
At the end, the board has favored non-pursuance of the formation of a formalized subsidiary company board for the international operations at the current stage.
Vodafone extends World Calling Club promotion (Qatar)
Vodafone Qatar has extended its World Calling Club international call rates to more than 180 countries for just US$17.69 a minute until June 30.
All of the most popular calling destinations are included in this promotion, which included Bahrain, Bangladesh, Canada, China, Egypt, France, Germany, Ghana, India, Iran, Indonesia, Italy, Japan, Jordan, Kenya, Saudi Arabia, Kuwait, Lebanon, Malaysia, Nepal, Nigeria, Oman, Pakistan, Philippines, South Africa, Spain, Sri Lanka, Sudan, Syria, Tanzania, Thailand, Turkey, United Arab Emirates, United Kingdom, United States of America and Yemen.
Vodafone is also extending until 30 June its International Calling Card 25 offer that gives customers 51 minutes of talk time at a rate of US$0.13 a minute. The countries included in this are India, Nepal, Bangladesh, Pakistan, Egypt, Indonesia, Sri Lanka, Philippines, Thailand, Syria, Sudan, Turkey, Bahrain, UAE and Saudi Arabia.
Vodafone introduces promotion on Calling Card 25 (Qatar)
Vodafone Qatar has introduced a new promotion on its International Calling Card 25 that will offer calls to 15 popular international destinations at US$0.13 a minute.
The promotion will run until 31 May, and customers will get 51 minutes of international calling when they buy the card to call India, Nepal, Bangladesh, Pakistan, Egypt, Indonesia, Sri Lanka, Philippines, Thailand, Syria, Sudan, Turkey, Bahrain, UAE and Saudi Arabia.
The International Calling Card 25 can be used by all Vodafone customers on their mobile phones.
Unlike other calling cards, consumers do not need to dial special numbers and enter PIN codes to use the card; with Vodafone’s International Card 25 all they need to do is load the card as they would any other scratch card.
STC positive on Syria mobile licence win (Saudi Arabia)
Saudi Telecom Company (STC) Chief Executive Saud al-Daweeshis has stated that the company is positive about winning Syria’s third mobile licence.
He stated that the operator has officially received communication from the Syrian authorities that they will inform STC of the next date for opening the bids and starting the auction, but the company is still waiting.
STC rolls-out offer for international calls (Saudi Arabia)
STC has introduced Sawa International, offering international calls to selected countries from US$0.14 per minute.
The company claims this is the cheapest international fare for prepaid cards in the country.
Under the new offer, STC customers can make discounted calls to India, Pakistan, Bangladesh, Egypt and Philippines for US$0.14 per minute, while calls to Indonesia, Sri Lanka, Turkey, Sudan, Yemen, Syria, Jordan, Libya, Lebanon and Nepal cost US$0.18 per minute.
Calls to Kuwait and UAE cost US$0.23 per minute. The discounted rate for calls to Morocco, Algeria, Afghanistan, Ethiopia and Eritrea is 102 halls per minute and calls to Somalia are US$0.34 per minute.
STC announced that this offer is available to all Sawa and Lana customers for one month starting 13 May.
MTN Q1 subscriber base grows by 4% (South Africa)
MTN Group has recored 147.3 million subscribers at 31 March, an increase of 4% from 141.6 million subscribers on 31 December 2010.
The group continued to perform well despite aggressive competition and heightened political unrest in certain countries in the Middle East and West Africa, MTN said in a trading update. Data, including SMS, continued its strong growth trajectory.
In South Africa, smartphones account now account for 11 percent of the postpaid and 1.5 percent of the prepaid base. Mobile money subscribers also increased by 5 percent to 4.6 million when compared to December 2010. The service is now active in 12 MTN markets, of which five are in pilot phase. In Uganda, mobile money revenues contributed more than 3.5 percent of total country revenue for the quarter.
According to the company, the South and East Africa region increased its subscriber base by 3.2 percent in the quarter. South Africa contributed 58 percent to the region’s subscribers, increasing by 1.9 percent to 19.197 million customers at the end of March.
It added that the growth was slower than expected as a result of higher prepaid disconnections due mainly to seasonality, although some distribution difficulties also contributed. Uganda increased its subscriber base by 6.9 percent to 6.908 million, maintaining its leadership position in an increasingly competitive market.
The West and Central Africa region increased its subscriber base by 3.4 percent for the quarter. Nigeria recorded a 4 percent increase in its subscriber base to 40.2 million as competitor campaigns and promotions stepped up.
MTN responded by introducing new segmented tariff plans and bundled offerings in late January.
Ghana also increased its subscriber base by 4 percent to 9.07 million, maintaining its market share as competition intensified. This was due to competitive offers in the market, improved churn management as well as the introduction of attractive data packages.
Cameroon recorded a loss of 203,000 customers following a regulatory requirement to disconnect 306,000 unregistered subscribers at the end of March. Cote d’Ivoire increased its subscriber base only marginally to 5.406 million, mainly as a result of the political and social instability.
Following a dispute relating to fees allegedly owed to the authorities in Guinea Conakry, a presidential decree has placed the company and its assets under the administration of the regulator. MTN stated that its operations in Guinea Conakry, Areeba, are negotiating in good faith with the government, and the company is confident it will reach an amicable solution.
The MENA region recorded a 5.5 percent increase in subscribers for the quarter. The growth within the region was largely attributable to Iran which contributes 66 percent to the region’s subscribers and which increased its subscribers by 5.5 percent to 31.4 million.
Syria increased its subscribers by less than 1 percent to 4.9 million.
Vodafone Qatar launches international calls at $0.17
Vodafone Qatar’s World Calling Club is offering international call rates to more than 190 countries for US$0.17 a minute.
Calling destinations included in this promotion are Bahrain, Bangladesh, Canada, China, Egypt, France, Germany, Ghana, India, Iran, Indonesia, Italy, Japan, Jordan, Kenya, Saudi Arabia, Kuwait, Lebanon, Malaysia, Nepal, Nigeria, Oman, Pakistan, Philippines, South Africa, Spain, Sri Lanka, Sudan, Syria, Tanzania, Thailand, Turkey, UAE, UK, US and Yemen.
Vodafone is also running a promotion on its International Calling Card 25 that gives customers 46 minutes of talk time to 15 popular destinations at a rate of QAR 0.14 a minute. Both promotions run until the end of May.
Syrian government postpones 3rd licence auction
The government of Syria has postponed indefinitely the planned auction of the country’s third GSM mobile licence – due to start on 27 April – amid ongoing political unrest in the Middle Eastern country.
The decision comes as President Bashar al Assad struggles to contain increasing anti-government protests in Syria, which have reportedly resulted in the deaths of dozens of people.
According to previous reports, Syria’s planned auction of a third mobile licence became a two-horse race between Saudi Telecom Company (STC) and Qatar Telecom (Qtel) after France Telecom (FT) became the latest telco to pull out of the contest, just hours after Turkcell revealed it would not be participating. Earlier, Etisalat also turned its back on the Syrian auction citing dissatisfaction with the condition that the winner pay a 25% revenue share to the government. Although Turkcell declined to give a reason for its exit, FT joined Etisalat in blaming the terms and conditions of the licence award. The French group said that the decision to withdraw was not linked to political upheaval in Syria, ‘but the conditions of the licence’.
If and when it takes place, the auction for a third mobile network operating licence in Syria carries a minimum reserve of US$122.2 million. The bidders left in the process are, however, committed to their bids.
Saudi Telecom, Qtel vie for license (Syria)
Saudi Telecom and Qatar Telecom reached the final phase of Syria’s auction for a third mobile license.
According to Deputy Telecommunications Minister Mohammad Al Jalali, UAE-based Etisalat, Turkcell and France Telecom have pulled out of the race.
According to a telecommunications ministry statement, the three companies withdrew because they did not agree with some contractual issues, including the 25% share in revenue for the Syrian state and its monopoly over infrastructure for seven years.
They also objected to requirements for certain frequencies not being available. Bidders will be notified about the evaluation results on April 14th, and the auction will be held on April 27th. Qatar Telecom chairman Shaikh Abdullah Bin Mohammad Al Thani stated that unrest in Syria has not changed the company’s interest in the country’s third mobile licence.
France Telecom drops Syria license bid
France Telecom has decided to no longer bid for the third mobile operating license in Syria.
According to France Telecom, its decision to pull out of the Syrian tender was not linked to events in Syria but the conditions of the license. Etisalat and Turkcell earlier withdrew from the bidding for similar reasons.
