MTN has cut off 4.5 million subscribers in Nigeria as the group treads with caution over any potential regulatory hurdles.<\/p>\n
In a quarterly update, MTN reported that group subscribers had decreased by 1.4% since Q4 2015, which was largely due to the million of subscribers cut off in Nigeria, representing a 6.9% decline in the country.<\/p>\n
MTN South Africa also saw subscriber numbers drop by 1.7%, though this was impacted by seasonality and the alignment of the subscriber base it acquired from Altech Autopage.<\/p>\n
MTN Group executive chairman, Phuthuma Nhleko said that the group was hit hard by the events that took place at the end of 2015 – referencing the multi-billion dollar fine imposed on the group by Nigerian authorities.<\/p>\n
Th Nigerian Communication Commission (NCC) hit MTN with a\u00a0$3.9 billion fine for failing to disconnect\u00a05.2 million unregistered SIMs on its network, which the government said posed a massive security risk for the country.<\/p>\n
“In order to mitigate any future regulatory challenges, the Group took an exceptionally conservative\u00a0stance by disconnecting all subscribers who could possibly be deemed to be non-compliant,” Nhleko said.<\/p>\n
“This has had a significant\u00a0unfavourable impact on total subscriber growth and revenue in Q1 16. Nonetheless, we believe this resolve to address\u00a0compliance matters decisively, has put the Group on a solid footing as regards the subscriber registration process and\u00a0regulatory matters in general.”<\/p>\n
MTN currently has 30.08 million subscribers in South Africa, while Nigeria remains the group’s largest market with 57 million subscribers.<\/p>\n
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