R/€ = 15.39Change: 0.16
R/$ = 13.75Change: 0.03
Au 1138.00 $/ozChange: 1.55
Pt 910.00 $/ozChange: 4.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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 About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Aug 08, 2012

MTN grows profit, subscriber numbers as competition heats up

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
© 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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other ICT News
The information and communications technology (ICT) in education leg of Operation Phakisa has been launched to transform the basic education sector and leverage ICTs to strengthen teaching, learning and administration of the education system. The Operation Phakisa...
Waste heat recovery has started at two major sites owned by telecommunications group MTN, with more sites to be converted during the remainder of the year, power solutions provider Master Power Technologies says. MTN made use of trigeneration, with gas used to...
RIAAN BADENHORST Our devices are increasingly intrinsic parts of our daily and personal lives, but are, thus, high-value targets for cybercriminals
Consumers must be aware of the risks posed by digital identity theft and must adhere to Internet use best practices, use different passwords for different accounts and protect their information by being aware of their digital footprints, including on multiple devices...
Latest News
In the boom times when the price of gold was soaring, Ebenezer Sam-Onuawonto had a dream job and a dollar salary many times the national average in this mining town in southwestern Ghana. When the price fell, he lost his job as human resources chief at a mining...
Property developer Balwin Properties aims to raise between R713-million and R1.6-billion ahead of its listing on the real estate holding and development sector of the JSE on October 15. It would use the funds to settle existing debt facilities and fund future...
The information and communications technology (ICT) in education leg of Operation Phakisa has been launched to transform the basic education sector and leverage ICTs to strengthen teaching, learning and administration of the education system. The Operation Phakisa...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
The Development Bank of Southern Africa (DBSA) – which disbursed a record R13-billion during 2015, from R12.7-billion in the prior year – remained optimistic that it could ramp-up loan disbursements to R25-billion a year by 2018 as it sought to give greater emphasis...
Alert Close
Embed Code Close
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
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