There is a major decrease of 6.9 percent in MTN user base in this month of April as 4.5 million unregistered subscribers have been disconnected by MTN.
It appears to experience the entire stand-off with NCC left an enduring impact on MTN. After the commission “served the organization a fine” since the company neglected to deactivate unregistered SIM cards, the organization has clearly chosen to go along with the NCC directive.
Clearly, this deve looming will badly affect the organization in terms of lost revenue, yet Executive Chairman, Phuthuma Nhleko trusts it is the best approach. He said:
In order to mitigate any future regulatory challenges, the group took an exceptionally conservative stance by disconnecting all subscribers who could possibly be deemed to be non-compliant.
This has had a significant unfavourable impact on total subscriber growth and revenue in Q1 16. Nonetheless, we believe this resolve to address compliance matters decisively, has put the Group on a solid footing as regards the subscriber registration process and regulatory matters in general.
The following need for MTN at this moment, is the means by which to win back subscribers. They plan to do this through offers and different types of engagement and it’s very likely users will be getting juicy offers soon as compensation.
MTN has seen a major decrease in income by 9.6%. While this directive appears to be terrible news for MTN, most of the disconnected users have initially registered their SIM cards but were disconnected due to incomplete registration details.