MTN has recorded a slowdown of business in Nigeria with over 5 million subscribers disconnected from the network as a result of stiff competition and tougher regulation in the Nigerian market.
According to the Chief Executive Sifiso Dabengwa, the company’s subscriber base in Nigeria fell marginally after more than 5 million users disconnected from the network having failed to register their SIM cards.
MTN reported a slowdown in quarterly subscriber growth on Thursday, caused by stiff competition and tougher regulation in the Nigerian market.
The company said their users increased 0.9 per cent in the three months to end-September, a slowdown from 2 per cent growth the same time a year ago.
“Aggressive price competition, weakening macroeconomic conditions in most of our markets and unfavourable exchange rate movements continued to impact financial performance for the quarter,” Dabengwa said.
Although mobile phone penetration is still well below 100 percent in Africa, growth in users is set to slow sharply in the next five years because the industry finds little commercial logic in deploying networks in remote, rural areas.