48-hour network outage costs MTN

MTN has published its quarterly financial update for the period ended 31 March 2016, which showed that MTN South Africa’s subscribers decreased by 1.7% quarter-on-quarter.

The decline was a result of seasonality and the alignment of the subscriber base recently acquired from Autopage, said MTN.

MTN’s prepaid subscriber base declined by 1.8% to 24.9 million, while the postpaid base declined by 0.8% to 5.2 million.

MTN said quarterly average revenue per user (ARPU) was impacted by the “exceptionally unfortunate 48-hour network outage experienced in February 2016”.

This had a negative impact of approximately 3% on revenue for the month, while billable minutes for the quarter declined by 11.3% year-on-year.

Great data growth

Data revenue continued to show strong growth, increasing by 22.9% year-on-year, and contributed 32.8% to total revenue.

This was supported by a 12% quarter-on-quarter increase in the value of data bundles sold.

Improved 3G and LTE coverage supported a 29% increase in ARPU for customers who moved from 2G to 3G, and an increase of 19% for customers who moved from 3G to LTE.

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48-hour network outage costs MTN