Telecoms giants loses over 5 million subscribers

folarin okunola

October 26, 2015 12:25 PM

Reports reveal that MTN stated that its users increased by 0.9 percent for three months ending in September, a decrease from the 2 percent growth it recorded for the same period the previous year.

Sifiso Dabengwa has resigned from his position as CEO of MTN Group

According to various media reports, Sifiso Dabengwa, CEO MTN Group has announced that the company’s subscriber base in Nigeria fell after more than 5 million customers were disconnected for failing to register their SIM cards.

MTN, Africa’s largest mobile telecommunications operator, reported a reduction in subscriber growth last Thursday, due to stiffer competition and even tougher regulation in the Nigerian market, one of the company’s key markets.

Reports reveal that MTN stated that its users increased by 0.9 percent for three months ending in September, a decrease from the 2 percent growth it recorded for the same period the previous year.

READ: NCC reportedly slams telcom giant with N1 trillion fine over pre-registered SIMs

"Aggressive price competition, weakening macroeconomic conditions in most of our markets and unfavourable exchange rate movements continued to impact financial performance for the quarter," Dabengwa said according to Nigeria CommunicationsWeek.

Mobile penetration is still well below 100 percent in Africa, and user growth is set to dip sharply in the next five years.

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