http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 12.91Change: 0.12
R/$ = 11.98Change: 0.15
Au 1205.63 $/ozChange: 21.72
Pt 1161.50 $/ozChange: 21.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 08, 2012

MTN grows profit, subscriber numbers as competition heats up

Back
MTN South Africa MD Karl Pienaar discusses South Africa’s performance under lower market prices. Recorded: 08.08.2012. Camerawork: Nicholas Boyd. Editing: Darlene Creamer
 
 
 
Bloemfontein|Cape Town|DURBAN|Engineering|Johannesburg|Africa|MTN South Africa|Africa|South Africa|Mobile Operator|Services|Telecommunications|Infrastructure|Karl Pienaar|Sifiso Dabengwa|Operations|3G
Engineering||Africa||Africa||Services||Infrastructure||Operations|
bloemfontein|cape-town|durban|engineering|johannesburg|africa-company|mtn-south-africa|africa|south-africa|mobile-operator|services|telecommunications|infrastructure|karl-pienaar|sifiso-dabengwa|operations|3g
© Reuse this



Despite increasing competition in the South African telecommunications market, mobile operator MTN South Africa added 1.5-million subscribers to its network in the six months to June, and expected to add another 1.5-million by year-end.

The telecommunications group, which now held 23.5-million customers, reported on Wednesday that it increased its market share to 35.5% during the period, up from 34.1% in December.

Group CEO Sifiso Dabengwa attributed the growth to strong promotional campaigns, MTN Mahala and MTN Zone offerings, as well as data services within its prepaid segment.

The South African operations recorded a 9.5% revenue increase to R10-billion during the six months to June, owing to a 49% jump in data revenue and prepaid revenue growth of 15%.

Data revenue contributed 15.9% of the total revenue compared to 11.6% in the prior comparative period, the group stated at its interim results presentation, in Roodepoort.

Discussing the “price wars” between competitors in the local market, MTN South Africa MD Karl Pienaar told Engineering News Online that competition between the operators has always been “very” aggressive. But, he noted, the drop in pricing seemed to be more aggressive than seen in recent years.

Pienaar said the lower prices were good news for both consumers and operators, with consumers gaining a better deal, while operators attracted higher revenue through increased use.

However, he believed that the data price had fallen too low and that it could hinder future capital expenditure (capex) and investment in infrastructure, or even competition, as the smaller players would have difficulty operating sustainably if the data price fell below cost.

Pienaar also pointed out that the price decreases were not only a result of competitive measures or pressures, but, in most cases, fell owing to increased efficiency and ever-changing infrastructure.

MTN reported that it has, to date, spent R1.9-billion of its authorised R5-billion capex for the year on modernising its network and increasing 3G capacity.

During the period, MTN rolled out 146 2G sites and 446 3G co-located sites. The group currently had 6 772 2G and 3 600 3G co-located sites across South Africa.

Further, MTN has trenched 95% of the national long distance route from Johannesburg to Durban, 91% of the Johannesburg to Bloemfontein route and 70% of the Bloemfontein to Cape Town route. Over 50% of the fibre network has been installed.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Telecoms News
Updated 7 hours ago South Africa was the only country in the Europe, Middle East and Africa (Emea) region that failed to maintain an average connection speed above the 4 Mb/s level in the fourth quarter of 2014, the latest ‘Akamai State of the Internet’ report revealed on Wednesday....
South Sudan plans to lay a fibre-optic cable to bring broadband Internet to its citizens in the next two years, its minister for telecommunications and postal services said. Africa's newest nation, which gained independence from Sudan in 2011 but was plunged into an...
Telecommunications giant Telkom will approach its employees directly after talks between it and the Communication Workers Union (CWU) over the current Section 197 process deadlocked this week. All affected employees would receive the option of taking up voluntary...
More
 
 
Latest News
Updated 1 hour 59 minutes ago State-owned power utility Eskom and Public Enterprises Minister Lynne Brown confirmed on Wednesday that contracts under the so-called short-term power purchase programme (STPPP) had been renewed ahead of the March 31, 2015, expiry date. Eskom told Engineering News...
Updated 2 hours 11 minutes ago The value of copper stolen in February decreased to R12.7-million, from R12.9-million in January, but was 18.1% higher than the value of copper stolen in February 2014, the South African Chamber of Commerce and Industry (Sacci) revealed on Wednesday. In its latest...
Updated 2 hours 40 minutes ago Paper and packaging group Mpact has concluded a broad-based black-economic empowerment (BBBEE) deal that will see a purpose-formed trust subscribing for 10% of the ordinary issued shares in group subsidiary Mpact Operations, which holds its South African businesses....
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96