{"id":551400,"date":"2007-01-30T06:56:16","date_gmt":"2007-01-30T06:56:16","guid":{"rendered":"http:\/\/localhost:8888\/wordpress\/technology\/551400-cell-behemoths-surge.html"},"modified":"2007-01-30T06:56:16","modified_gmt":"2007-01-30T06:56:16","slug":"cell-behemoths-surge","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/technology\/551400-cell-behemoths-surge.html","title":{"rendered":"Cell behemoths surge"},"content":{"rendered":"

Stop and think about that for a second: its already huge customer base of 25,7-million was joined by another 2,43-million in a mere 12 weeks. Surely no other industry is growing so rapidly. <\/font><\/p>\n

At the same time, it managed to push up the all-important figure of Arpu (average revenue per user). In SA, its largest and most lucrative market, Arpu rose from R124 a month to R127. <\/font><\/p>\n

Its Arpu also rose in Mozambique and Lesotho. It did not say whether spending was up because more people made more calls, or whether its prices rose, which would be bad news for the customers \u2014 but either way it\u2019s good news for shareholders. <\/font><\/p>\n

Meanwhile, MTN has followed its aggressive expansion into Iran with a $70m deal to buy VGC Communications in Nigeria. <\/font><\/p>\n

VGC offers high-speed data communications, broadband, website hosting, and satellite connectivity to business and residential customers in Lagos, Port Harcourt and Abuja. <\/font><\/p>\n

Merrill Lynch analyst Meloy Horn says its network includes an exchange with 20000 active lines and a capacity for 100000 and a fibre-optic network. <\/font><\/p>\n

VGC has a licence to provide both fixed and mobile services, and MTN can use that to strengthen its position in the business market. <\/font><\/p>\n

Horn expects MTN to con sider additional acquisitions including a broadband operator to add more strength. That makes sense, as Nigeria is Africa\u2019s fastest growing telecoms market and this is exactly the right time to sign up all those customers seeking a service provider. <\/font><\/p>\n

Horn retains a neutral rating on MTN, saying its recent strong share price performance relates to a general regional rerating of the cellular industry and an increased appetite for risk rather than any improvement in MTN\u2019s fundamentals. <\/font><\/p>\n

Horn remains concerned about MTN\u2019s new operation in Iran, where weak growth saw it sign up only 355000 users by last month, compared with the expected 1-million. <\/font><\/p>\n

That, plus a delay in the launch of prepaid services and some regulatory challenges, \u201cwould prevent MTN Iran from becoming a major catalyst in the short term,\u201d Horn says. <\/font><\/p>\n

Perhaps MTN has moved to boost its activities in the far more certain market of Nigeria in recognition of the tougher conditions in Iran.<\/font><\/p>\n

Comments<\/a><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

AS USUAL, both Vodacom and MTN are expanding. Yesterday, Vodacom issued subscriber figures showing it has grown its customer base by almost 10% over the three months to December. <\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-551400","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/551400"}],"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=551400"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/551400\/revisions"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=551400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=551400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=551400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}