Pan-African telecommunication multinational, MTN Group has been named as the only South African company on the World Champions list – a ranking that names global companies dominating their respective industries.
“Being named on the World Champions list is exciting and humbling, especially as MTN commemorates its 20th anniversary this year. This global recognition signifies that we continue to play a vital role in our industry,” says MTN Group President and CEO, Sifiso Dabengwa.
Dabengwa summarized the company’s journey to prominence, explaining that from a single licence in South Africa awarded in 1994, MTN has invested hundreds of billions of rand in state-of-the-art networks and licences to now connect 210.1 million people in 22 countries across Africa and the Middle East.
MTN has been listed alongside iconic global companies including Apple, Google, Facebook and Microsoft.
Explaining the decision to include MTN as a World Champion, the list highlighted that while company operates in 21 countries, it is the number 1 player in 15 of its markets and number 2 in the remaining.
Companies on the list, which is compiled by analysts from American multinational financial services company, Citi Group, must have a market value in excess of R30 billion ($2.8 billion), be in the top three in terms of market share in their segment, and have global reach as well as a lasting sustainable business model.
Downturn in Subscriber Base
Despite the recent recognition, MTN posted a relatively negative quarterly result, showing a downturn in subscriber growth. An official statement revealed a loss of almost 1 million subscribers, with statistics placing out-goers at 824 768 which brings its total to 24 million customers.
“Overall subscriber numbers reduced by 824, 768 bringing total subscribers to 24,9 million at the end of the quarter,” read the official release.
While the overriding conclusion by market watchers was that the large outflow of customers was largely driven by the recent porting system implemented in Nigeria – MTN’s largest market on the continent – by the country’s regulating agency (NCC), which has seen the South African-based multinational the most hit amongst local operators, MTN noted that disconnections of lines that returned little or no revenue was the major cause of the drop.
“This was largely due to the disconnection of 973, 064 subscribers who had been showing activity but not generating revenue as per our 90 day RGS requirement.”
Its Nigerian unit rather delivered a “satisfactory performance” despite a month-long ban on new sim registration after been fined by the NCC for “poor service delivery” and invasion of privacy, as complaints grew larger.
“MTN Nigeria grew its subscribers marginally to 57.2 million and the operation’s market share declined marginally to 49.3%. MTN continues to engage constructively with the NCC on quality of service KPIs and regular market activities resumed from 1 April,” the statement noted.
Figures from NCC reveals that since the porting system – which allows customers switch between networks without changing their numbers – MTN has faced the most heat of all operators. It is said to have accounted for 49 percent of the port outs since inception, almost half the total.
The pan-African telecom giant noted that subscription has soared since the ban on registration was lifted.
