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MTN Vows to Take Back Market Share Lost to Telkom
MTN vows to take back market share lost to Telkom as the competition in South Africa’s mobile market becomes tougher. Ralph Mupita, the MTN Group CEO, has admitted that MTN South Africa is losing ground, especially in the prepaid mobile market, to their rival Telkom. This loss of customers has been very clear, and MTN knows they need to work hard to get those customers back.
Mupita explained that while MTN still faces tough competition from Vodacom and Cell C, it is Telkom that is making noticeable gains. He pointed out that MTN’s loss of market share to Cell C is small and not very clear, but losing market share to Telkom is something they clearly see happening. Cell C is focusing on smaller, specific groups like young people with special offers, and they are working on making a profit rather than just growing big. But Telkom is taking a bigger slice of the market from MTN.
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Looking at the recent financial updates, it’s easy to see why MTN is worried. MTN South Africa grew its overall service revenue by a little over 2%, and data revenue went up by just over 4%. But voice calls brought in less money, dropping by more than 2%. Money made from fintech services like MTN Mobile Money barely grew. The only strong area for MTN was the enterprise division, where income grew by almost 12%. Because of these challenges, MTN lowered its expectations for how much revenue growth it can achieve in the next few years.
At the same time, Telkom is doing better. They told investors their mobile service revenue grew almost 8%, and they are winning more valuable customers faster than the market as a whole. Mobile data users on Telkom’s network jumped by more than 27%, reaching over 17 million people. More homes are also getting connected with fibre optic internet through Telkom, which grew by over 17%. Telkom’s earnings improved, and their profit margins are getting stronger, while MTN’s margins slipped a little and they had to lower their profit goals.
Even with these problems, MTN vows to take back market share. Ralph Mupita said MTN is ready to fight and is bringing in new leaders to help win customers again. Ferdi Moolman, who helped MTN grow in Nigeria, is now MTN South Africa’s new CEO. Yolanda Cuba has joined as deputy CEO. The previous CEO, Charles Molapisi, is moving to another important role in the company. Mupita said, “We’re losing some market share to Telkom, not so much to Vodacom, so we are putting in resources to fight back for market share.”
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This shows MTN’s strong determination to get back the customers they have lost. MTN market share lost to Telkom is an important issue for them, but they are working hard to change the situation. The competition in South Africa’s mobile market is fierce, but MTN vows to take back market share lost to Telkom by improving their services and leadership.
MTN vows to take back market share lost to Telkom as they face real challenges in South Africa. Telkom is growing fast and grabbing more customers, especially in prepaid services. MTN knows this and is making big changes to fight back. With new leaders in place and a clear plan, MTN vows to take back market share and remain a strong player in the South African mobile market. Everyone will be watching closely to see how this battle unfolds in the months ahead.
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