Africa’s largest mobile operator, MTN Group, has cited stiff competition and tougher regulation in its key Nigerian market as reasons for its uninspiring 2 percent subscriber rise in the third quarter of 2014 ended September 30.
MTN said between July and September its subscribers base across Africa and the Middle East grew to 219 million users. However the telecom giant said it suffered weaker results in its largest market, Nigeria. this it says was offset by improved customer growth in its home market of South Africa, where it added 1.4 million new subscribers but lags behind rival Vodacom.
The company also raised its full-year subscriber guidance, saying that it plans to add 17.5 million net subscribers by full year 2014, compared with previous guidance of 17.25 million. Another good news for the company is its data revenue, which is up 34 percent so far this year, and now contributes to nearly 18 percent of its total revenue, the company said.
Africa’s telecom space has been hotly competitive this year, especially in sub-Saharan Africa where telecommunication companies have been involved in the scramble for new markets as the region witnesses rapid mobile and internet growth.
Recent statistics released by Ghana’s National Communication Authority shows a neck-in-neck competition to win mobile data subscribers in the West African country. Although MTN leads the pack as the largest telecom by mobile data subscriber base, the statistics showed Glo was ahead in gaining new subscribers, with Tigo, MTN and Airtel following behind.
Last week, South Africa-based Econet Wireless Group paid $65 million for two Telecom subsidiaries of International telecom giant Vimpelcom Ltd in Burundi and Central African Republic, in a move to grow its business in the region.
