Aug 08, 2012
MTN grows profit, subscriber numbers as competition heats upBack
Bloemfontein|Cape Town|DURBAN|Johannesburg|MTN South Africa|South Africa|Mobile Operator|Telecommunications|Karl Pienaar|Sifiso Dabengwa|3G
© Reuse this
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
Other Video News
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of 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 steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...