MTN Loses Millions Of Subscribers In South Africa

MTN has confirmed that in the six months to June it lost close to two million subscribers in South Africa and service revenue growth declined by 3.3 percent in a stubbornly weak economy.
According to MTN, the decline in performance was due to its expensive data rates resulting in consumers opting for cheaper data offerings from competitors.

MTN’s CEO Rob Shuter said that the mobile operator now has 1.1 million less active data subscribers, even though the post-paid subscribers increased by a marginal 0.1 percent to 5.6 million.

He added that a significant contributor to the decline had been the cancellation of the 1GB promotion.

MTN cancelled its popular 1GB promotion as it was not generating enough value for the telco. This move caused a lot of prepaid customers to ditch MTN and move on to other networks.

Shuter noted that Cell C had also contributed significantly to its losses by either failing or delaying to make payments under its roaming deal with MTN resulting in millions of rands lost.

Overall the MTN group achieved strong subscriber growth of over 7.7 million in the first six months of the year and reached a total of 240 million subscribers.


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