Telecommunications operator MTN Group on Thursday, 30 October, said that its South African subscriber base declined from 17.231 million at the end of June 2009 to 16.419 million at September 30, as a result of the implementation of the Regulation of Interception of Communications and Provision of Communication- Related information Act.
The group reported subscribers up 5% at 108.466 million for the quarter ended September 30.
Subscribers for the year to date were up 19.6%, it said.
"While there has been a drop in the subscriber numbers in the South African operation, there is no need to be too concerned about this.
"It is clearly an effect of the implementation of RICA on August 1.
"When prepaid subscriber registration was introduced in Senegal in 2007, Sonatel - the market leader there - lost 6% in subscriber growth numbers and in DRC the practice has been suspended following the negative impact it had on operators' net additions capabilities, among other things," Chireka said.
"Therefore, Frost & Sullivan believes it's quite expected that we should expect the same trend in South Africa. In Senegal, the operators have since recovered. However, operators there have struggled to regain their previous growth levels and this may be expected locally as well," Chireka concluded.
Published courtesy of
