Cellular giant MTN has lost almost 2 million subscribers in the few short months since June, recording a 3.3% loss in growth. With the economy in dire straits, the behemoth has lost customers to cheaper data providers.
MTN has revealed it has dropped 1.9 million subscribers down to 29.2 million in just six months.
Chief executive Rob Shuter has chalked the decline up to a 1GB promotion that the telecoms giant has since opted to pull the plug on:
“We had our famous 1GB promotion, which we decided was not generating value and we pulled it out of the market. A lot of those SIMs have since become dormant and contributed to the drop in prepaid users."
Delayed payments in MTN's network roaming deal with Cell C has also resulted in a R393 million impairment, reports eNCA, with Shuter saying the company is evaluating a 'sustainable solution' with the company.
The local prepaid service has since a 5.5% revenue drop with the implementation of out-of-data rates and regulations put in place by the Independent Communications Authority of SA.
Shuter says that the recent release of laws allowing for high-demand spectrums to be opened is a move in the right direction but it remains unclear how much will be made available to mobile operators.
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