MTN Group recorded 147.3 million subscribers at 31 March, up 4 percent 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.
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. The growth was slower than expected as a result of higher prepaid disconnections due mainly to seasonality, although some distribution difficulties also contributed, MTN said. 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 said 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.
