Press Releases

MTN Group consolidates emerging market leadership as subscribers exceed 68,2 million

SEA region subscriber base up 4% for the quarter ended 31 March 2008

WECA region subscriber base up 9% for the quarter ended 31 March 2008

MENA region subscriber base up 26% for the quarter ended 31 March 2008

The MTN Group is pleased to announce that it recorded 68,207,000 million subscribers across its 21 operations for the quarter ended 31 March 2008, an 11% increase from 61,353,000 million subscribers recorded at 31 December 2007.

The South and East Africa (SEA) region increased its subscriber base by 4% for the quarter to 20,017,000 (December 2007:19,329,000). The West and Central Africa (WECA) region increased its subscriber base by 9% to 30,505,000 (December 2007: 27,999,000) and the Middle East and North Africa (MENA) region increased its subscriber base by 26% to 17,691,000 million subscribers (December 2007: 14,025,000).

Says MTN Group President and CEO, Mr Phuthuma Nhleko, “In an increasingly competitive environment, I am pleased with the steady subscriber growth recorded for the first quarter of 2008.”

The primary driver of growth in the SEA region was the MTN Group’s South African operation which contributed 76% to the region. MTN South Africa increased subscribers by 3% to 15,169,000 (December 2007: 14,779,000). This increase is largely attributed to MTN Zone, the dynamic tariffing product offering. As at 31 March 2008, MTN Zone had 3.8 million subscribers. Uganda increased its subscriber base by 2%, while Zambia increased its base by 34% in the same period due to a revised product offering. Rwanda’s increase in subscribers of 16% for the quarter was driven by a tariff decrease in February 2008.

Nigeria contributed 58% to the WECA region, with an increase of 8% in subscriber numbers to 17,766,000 (December 2007:16,511,000 subscribers).There was increased focus on network rollout in Nigeria and Ghana with 285 and 182 base stations rolled out in these countries respectively. The aggressive network rollout has resulted in a meaningful progress in addressing the quality and capacity challenges. Ghana’s subscriber base increased by 9% to 4,398,000 (December 2007: 4,016,000).

In the MENA region, the increase in subscriber numbers for the quarter was mainly due to strong growth from start-up operations in Iran, which increased subscribers by 50% to 9,025,000 (December 2007: 6,006,000). The number disclosed at mid-March of 9,380,000 incorrectly included unactivated SIM cards given away as part of the buy one get one free promotion. Strong subscriber growth was achieved in Sudan and Afghanistan 13% and 22% respectively, due to relatively low penetration in these countries.

MTN South Africa’s blended ARPU (average revenue per user) decreased by 3% indicating that rising inflation has not meaningfully affected ARPU to date, however this could potentially have an impact in the future.

Nigeria, Ghana and Cameroon ARPU’s remain robust despite decreasing in line with seasonal trends and increased penetration. Sudan and Afghanistan’s strong subscriber growth combined with competition and reducing tariffs has had a negative impact on ARPU resulting in a 37% and 40% decrease respectively.

Shareholders are advised of a R272 million correction to Ghana’s H2:2007 revenue and ARPU announced on the 18 March 2008 to reflect a correct revenue amount of R4,048 million and an ARPU of US$15 for the full year to 31 December 2007.

Subscriber Numbers

	Dec-07	Mar-08	Quarter %	Contribution %
	Subs '000	Subs '000
SEA
South Africa *	14,799	15,169	3%	76%
Post-paid	2,493	2,580	4%	13%
Pre-paid	12,288	12,589	2%	63%
Uganda	2,362	2,464	4%	12%
Mascom – Botswana	874	880	1%	4%
Rwanda	652	754	16%	4%
Swaziland	380	398	5%	2%
Zambia	262	352	34%	2%
Sub total	19,329	20,017	4%	*29%*
WECA
Nigeria	16,511	17,766	8%	58%
Ghana	4,016	4,398	9%	14%
Cameroon	2,559	2,855	12%	9%
Ivory Coast	2,679	2,896	8%	9%
Benin	652	679	4%	2%
Congo – Brazzaville	316	404	28%	1%
Conakry	727	870	20%	3%
Liberia	304	351	15%	1%
Bissau	235	286	22%	1%
Sub total	27,999	30,505	9%	*45%*
MENA
Syria	3,109	3,158	2%	18%
Iran	6,006	9,025	50%	51%
Yemen	1,507	1,565	4%	9%
Sudan	2,090	2,361	13%	13%
Afghanistan	1,200	1,462	22%	8%
Cyprus	113	120	7%	1%
Sub total	14,025	17,691	*26%*	26%

Grand Total	61,353	68,213	*11%*	*100%*

ARPU

	Dec-07	Mar-08	Quarter %
	*ARPU*	*ARPU*
SEA
South Africa *	*R149*	*R144*	*-3%*
Post-paid	R396	R406	3%
Pre-paid	R92	R90	-2%
Uganda	$10	$9	-16%
Mascom – Botswana	$15	$13	-15%
Rwanda	$12	$11	-11%
Swaziland	$18	$16	-14%
Zambia	$10	$12	18%
WECA
Nigeria	$17	$16	-5%
Ghana	$15	$14	-7%
Cameroon	$14	$12	-14%
Ivory Coast	$13	$11	-13%
Benin	$12	$15	20%
Congo – Brazzaville	$20	$24	18%
Conakry	$15	$10	-30%
Liberia	$19	$17	-11%
Bissau	$17	$11	-33%
MENA
Syria	$20	$18	-8%
Iran	$10	$9	-6%
Yemen	$9	$8	-11%
Sudan	$12	$8	-37%
Afghanistan	$11	$7	-40%
Cyprus	$39	$44	12%

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 average revenue per subscriber calculated on a monthly basis. Revenue includes interconnect fees and excludes connection fees and visitor roaming revenue is divided by the weighted average subscriber base over the period.

* Subscriber numbers and ARPU’s in South Africa include community service payphones the prepaid category and application providers into the postpaid category. Prior periods have been adjusted for comparative purposes.