MTN lost almost 2 million subscribers in South Africa

MTN Africa’s telecoms giant has confirmed that it has lost almost 2 million subscribers in South Africa in the last 6 months, they say that they have 1.9 million less, local subscribers who are more price-sensitive and are choosing to go to cheaper data networks.

MTN chief executive Rob Shuter said “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,” 

He says that they have also experienced an R393-million impairment because of a delay in payments of their roaming agreement with Cell C, Shuter said “We are evaluating a sustainable solution to the agreement with Cell C,”

It has been reported that the domestic prepaid service revenue declined by 5.5 % since the introduction of out of data bundle rates and regulations by the Independent Communications Authority of South Africa (Icasa).