Telecoms giant MTN loses almost 2 million subscribers in 6 months

Telecoms giant MTN loses almost 2 million subscribers in 6 months

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.

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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."

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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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Source: Briefly.co.za

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