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Telkom is cleaning up in mobile

Company could soon challenge Cell C for the position of SA’s third largest mobile operator.

While its rivals Vodacom, MTN and Cell C struggle with flat growth in a tough economic environment, Telkom is killing it in the mobile business, showing astonishing growth in subscribers in the past year on the back of its aggressive data-led tariff plans.

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In the year ended March 31, 2019, Telkom’s mobile service revenue jumped by 58.3% on the back of an 85.9% leap in active subscribers to 9.7 million. If it keeps up this rate of growth in the new financial year, the company could soon challenge Cell C for the position of South Africa’s third largest mobile operator behind Vodacom and MTN.

And the company is not adding subscribers by going after lower-spending customers. Indeed, average revenue per user (Arpu) — a key industry metric — remained stable at R100/month.

Prepaid subscribers more than doubled compared to the 2018 financial year, increasing by 109.3% to 7.8 million (3.7 million previously).

“Our prepaid proposition continues to attract good quality subscribers demonstrated by a significant increase in prepaid Arpu of 19.8% to R71,” Telkom said. Post-paid subscribers increased by 26.8%, with net additions of approximately 396 000 to reach 1.9 million, with an Arpu of R186.

 (c) 2019 NewsCentral Media

This article was published with the permission of Tech Central. The original publication can be viewed here.

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