Telkom Mobile adds 383 099 new subscribers in 2015

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Telkom Mobile, a business unit of information and communication solutions provider Telkom, posted a 21,2% rise in customers to 2.19 million total subscribers in the year to end-March 2015.

The number was driven by the addition of 383 099 new subscribers.

The Pretoria-based firm said on Monday Telkom Mobile increased mobile data revenue by 50.6% to R988 million. Data revenue now constitutes approximately 35,9% of group revenue, which increased 4,5 percent from the prior year.

Telkom added that the mobile business managed to reduce the EBITDA loss by 48,7% by increasing service and subscriptions revenue (excluding  equipment sales) by 48,0 percent.

The good results comes as the telco is attempting to cut operating costs and capital expenditure by outsourcing its radio access network to MTN, South Africa’s second-largest cellular group.

The yet-to-be concluded agreement with MTN will enable Telkom Mobile to expand its mobile coverage through a roaming agreement.

Telkom, Africa’s largest fixed-line telephone group, said on Monday that it is still in talks with regulators about its deal with MTN. “Our agreement with MTN still being reviewed by the Competition Commission, said Telkom on Monday. Telkom mobile capital expenditure decreased 64,8% to R481 million  versus R1.4 billion in 2014, due to the shift to a more concentrated rollout in major metropolitan areas.

Telkom Mobile was launched in October 2010 as 8ta and rebranded in March 2013.

The mobile phone market continues to be very competitive and last week FNB Connect launch a mobile offering for the banks’ clients , pitting it squarely against a number of rivals such as Telkom Mobile,  Vodacom, MTN, Cell C, Virgin Mobile and the new kid in the block Me&You Mobile.

Cell C launched a promotional campaign last month to woo customers away from its rivals including Telkom Mobile by dangling a whopping R10 000 reward to new customers who ditch contracts with its competitors.

Telkoms said on Monday mobile handset and equipment sales revenue increased 42%, driven by higher bulk sales to dealers and a sharp increase in smartphone and tablet sales.

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