{"id":174948,"date":"2016-08-06T10:23:47","date_gmt":"2016-08-06T08:23:47","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=174948"},"modified":"2016-08-06T10:25:21","modified_gmt":"2016-08-06T08:25:21","slug":"why-mtn-increased-its-prices","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cellular\/174948-why-mtn-increased-its-prices.html","title":{"rendered":"Why MTN increased its prices"},"content":{"rendered":"<p>MTN has released its\u00a0<a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/174918-mtn-south-africa-loses-subscribers.html\"><strong>group interim financial results<\/strong><\/a> for the six months ended\u00a030 June 2016, which showed a decline in its EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 5.5% in South Africa.<\/p>\n<p>The results further showed a 2.6% decline in subscriber numbers for its local operations, and a 6.1% decline in outgoing voice revenue.<\/p>\n<p>The MTN group reported a headline loss per share of 271 cents \u2013 the first time the company has reported a loss since being listed.<\/p>\n<p>These numbers place significant pressure on management to turn the company\u2019s financial fortunes around.<\/p>\n<p>It is therefore not surprising that <a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/170551-massive-mtn-price-hikes.html\"><strong>MTN South Africa introduced significant price hikes<\/strong><\/a>\u00a0and big decreases in value across many of its\u00a0contract packages in the build up to its results announcement.<\/p>\n<p>MTN also recently increased its default prepaid call rate from 79c to R1.50 per minute, after introducing a new default plan for MTN PayAsYouGo users called MTN Base.<\/p>\n<p>MTN\u2019s official position is that it revised its pricing and package structures to \u201censure that it remains relevant and competitive\u201d.<\/p>\n<p>The feedback from MTN subscribers about the decreased value and higher prices was less than complimentary towards the company.<\/p>\n<p>\u201cI&#8217;m confused. How do hiking prices keep them relevant and competitive?\u201d said one consumer.<\/p>\n<p>\u201cMTN needs to up their revenue to pay the Nigerian fine, following their willful disobedience in the Nigerian market. Answer: Hike your prices and fleece another market,\u201d said another.<\/p>\n<p>MTN was asked for comment regarding its recent price increases, but the company did not respond by the time of publication.<\/p>\n<h3 class=\"my-4\">More on MTN<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/174152-massive-mtn-price-hikes-kick-in-today.html\"><strong>Massive MTN price hikes kick in today<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/171989-mtn-encouraged-by-price-hike-feedback.html\"><strong>MTN encouraged by price hike feedback<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MTN\u2019s significant EBITDA margin decline and slowing outgoing voice revenue has put pressure on the company to find a solution.<\/p>\n","protected":false},"author":23,"featured_media":152615,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[35,42],"class_list":["post-174948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cellular","tag-headline","tag-mtn"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/174948"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=174948"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/174948\/revisions"}],"predecessor-version":[{"id":174956,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/174948\/revisions\/174956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/152615"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=174948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=174948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=174948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}