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November 2008


MTN subscribers exceed 80 million

The MTN Group is pleased to announce that it has increased its subscriber base to 80,736,000 as at 30 September 2008 across the Group's 21 operations in Africa and the Middle East. This is a 9% increase from 74,058,000 subscribers recorded at 30 June 2008.

The proportional subscriber contribution between MTN's regions remains unchanged with that at 30 June 2008. South and East Africa (SEA) region contributed 28% of the Group's total subscribers while West and Central Africa (WECA) and the Middle East and North Africa (MENA) regions contributed 44% and 28% respectively.

The SEA region increased its subscriber base by 7% for the quarter. The South African operation contributes 72% to the SEA region's subscribers, with its subscribers increasing 4% to 16,173,000 for the quarter ended 30 September 2008. Postpaid net connections were satisfactory for the quarter. Prepaid growth was underpinned by the value proposition, MTN Zone, which was enhanced to include off net calls and which continues to be a success. Uganda increased its subscriber base by 16% following the introduction of MTN Zone in late July, with approximately 2 million subscribers on this price plan at 30 September 2008.

The WECA region increased subscriber base by 10% for the quarter. MTN Nigeria, which contributes 56% to the WECA region's subscriber base, recorded a 9% increase in subscriber base to 20,171,000. Aggressive network rollout in Nigeria continued in Q3 with 524 BTSs rolled out during the quarter. Quality of service improved significantly resulting in the advertising ban being lifted by the Regulator.

In the WECA region, MTN Zone was introduced in Ghana, Cameroon and Benin during the period under review. Ghana rolled out 377 BTSs and increased its subscriber base by 14% to 5,713,000. Both Cameroon and Cote d'Ivoire increased their subscriber bases by 7% to 3,313,000 and 3,243,000 respectively.

The MENA region recorded a 10% increase in subscribers for the quarter. This was mainly due to continued growth from the Iran operation, which increased its subscribers by 13% to 13,139,000. Following the substantial disconnections in Q2, subscriber growth in Sudan has started to show an improvement with a 7% increase in its subscribers to 2,266,000. Syria's more modest increase of 2% is attributed to a slowdown in acquisitions during the Ramadan period.

MTN Group President and Chief Executive Officer, Mr Phuthuma Nhleko, says: "We are satisfied with the subscriber growth across our operations. As competition increases, MTN continues to explore growth opportunities."

MTN South Africa's blended ARPU increased by 1%, indicating that rising inflation has still not had an unfavourable affect on the quantum of disposable income allocated to telecommunications. Nigeria, Ghana, Iran and Cameroon ARPUs remain robust not withstanding seasonal trends and increased penetration.

"Going forward, we will continue to focus on infrastructure roll out to ensure that we take full advantage of demand and maximize our growth potential," concludes Nhleko.

Subscriber Numbers

Jun-08 Sep-08 Quarter % Contribution %
Subs '000 Subs '000
SEA
South Africa * 15,590 16,173 4% 72%
Post-paid 2,588 2,648 2% 12%
Pre-paid 13,002 13,525 4% 60%
Uganda 2,776 3,228 16% 14%
Mascom - Botswana 885 890 1% 4%
Rwanda 834 988 18% 4%
Swaziland 457 501 9% 2%
Zambia 453 582 29% 3%
Sub total 20,995 2 2,362 7% 28%
WECA
Nigeria 18,565 20,171 9% 56%
Ghana 4,997 5,713 14% 16%
Cameroon 3,106 3,313 7% 9%
Ivory Coast 3,030 3,243 7% 9%
Conakry 797 911 14% 3%
Benin 779 828 6% 2%
Congo - Brazzaville 522 823 58% 2%
Liberia 407 440 8% 1%
Bissau 303 323 6% 1%
Sub total 32,506 35,765 10% 44%
MENA
Iran 11,593 13,139 13% 58%
Syria 3,375 3,458 2% 15%
Sudan 2,109 2,266 7% 10%
Yemen 1,725 1,812 5% 8%
Afghanistan 1,627 1,793 10% 8%
Cyprus 128 141 10% 1%
Sub total 20,557 22,609 10% 28%
Grand Total 74,058 80,736 9% 100%


ARPU

Jun-08 Sep-08 Quarter %
ARPU ARPU
South Africa* R145 R147 1%
Post-paid R405 R409 1%
Pre-paid R92 R94 2%
Uganda $9 $9 1%
Mascom - Botswana $13 $13 0%
Rwanda $11 $11 1%
Swaziland $15 $15 0%
Zambia $12 $12 -1%
WECA
Nigeria $16 $17 1%
Ghana $14 $13 -9%
Cameroon $12 $12 -2%
Ivory Coast $11 $11 -2%
Benin $16 $17 1%
Congo - Brazzaville $23 $20 -13%
Conakry $10 $10 -1%
Liberia $16 $14 -8%
Bissau $12 $11 -3%
Syria $19 $20 2%
Iran $9 $9 -1%
Yemen $8 $8 -1%
Sudan $7 $7 -5%
Afghanistan $6 $6 -1%
Cyprus $45 $46 1%


*Percentages are based on actual and not rounded figures

Subscribers are customers who have participated in a revenue generating activity in the last 90 days. ARPU is the monthly weighted average revenue per subscriber. Revenue includes interconnect fees and excludes connection fees and visitor roaming revenue, and this is divided by the weighted average subscriber base over the period.

** South Africa subscribers and ARPUs include community service payphones into pre-paid and application providers into post-paid.