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MTN Uganda growth plans dampened

August 26, 2011 • Mobile and Telecoms

MTN Uganda, one of the leading telecommunications companies and mobile providers indicates that the rising inflation and increased competition will adversely affected its growth target for the next financial reporting period.

Sifiso Dabengwa, MTN Group CEO (image source: file photo)

“Some of the real challenges include price erosion by competition and the fact that inflation at about 18% to a certain extent negatively impacted us as far as growth is concerned,” MTN Group CEO Sifiso Dabengwa told a news conference in Kampala, Uganda this week.

MTN Uganda’s subscriber base grew to 7.5 million users by the end of June 2011. MTN Uganda plans to add an additional one million users in the second half of 2011.

MTN Uganda Chief Executive Themba Khumalo said the company’s average revenue per user (ARPU), a key industry measure of performance, had declined to about $4 in the first half of 2011 from $6 in 2010.

Uganda’s major telecommunications operators include Warid, Airtel, Uganda Telecom and Orange.

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