MTN’s ARPU dives as it tops 100 million subs

South Africa’s MTN reached the 100 million subscriber milestone in April, becoming the largest emerging markets telecoms operator in the world by subscriber base. MTN’s network covers 21 markets with a population of approximately 500 million.

The largest share of subscribers came from the West and Central Africa region accounting for 45 per cent, while Middle East and North Africa contributed 29 per cent and South and East Africa amounted to 26 per cent. The operator’s biggest market remains Nigeria with almost 26 million subscribers, followed by Iran with more than 18 million.

“For a 15-year-old company operating amid increased competitive intensity in all its markets, this is a most satisfactory performance by MTN. This affirms our leadership position in many areas of our business,” stated MTN group president and CEO Phuthuma Nhleko.

“MTN’s success is also attributable to a business model that has included sound financial investment, strong corporate governance, effective management and corporate social responsibility,” he added.

However, while subscriber numbers in the first quarter of 2009 were up eight per cent from Q408, the operator’s average revenue per user (ARPU) took a battering in every market with year-to-date ARPUs falling by an average of 18.6 per cent between end-December 2008 and end-March 2009. The most impacted market was Zambia where ARPU slumped 41 per cent from US$11 to US$6. Next were Congo Brazzaville and Rwanda which both declined by 33 per cent.

MTN’s highest ARPU market was Cyprus with US$36, while Sudan and Afghanistan resided at the other end of the scale with US$5 each.

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