Middle East and North Africa region - MTN Group

MTN IrancellLaunched October 2006, market share 37%, population71,9 million, forecast market size in 2013 – 53 million,shareholding 49%.Mobile penetration – Iran (%)70OverviewIn its second full year of operations, MTN Irancell movedsignificantly beyond a start-up project, taking more than halfof all net additions in the market. This brought total subscribernumbers to 16,04 million, up from six million – the largestannual increase in subscribers of any MTN operation, ever – andbolstered MTN Irancell’s market share to 37%, from 23% a yearearlier.56422820140Capex – Iran3 0006137Dec 07 Dec 08(R million)2 743Subscriber acquisition was driven by strong brand image,successful seasonal promotional campaigns and new productsand services.Average revenue per user declined by USD1 to USD9 . This isdue to the sharp increase in the number of subscribers, whichnow includes many more lower-income customers, as well asthe depreciation of the rial against the dollar. Almost 98% ofour users are prepaid, while the rest are on postpaid plans, asignificant change from two years ago when the market wasalmost completely postpaid.2 2501 50075007731 559Dec 07 Dec 08Market environmentA steep fall in the price of oil – Iran’s key export – led to adrop in the value of the rial against the dollar and also stokedinflation, which at one stage reached more than 23% in theyear. Other reasons for the inflationary environment were Iran’sexpansionary monetary policy, fuel rationing and the liftingof some government subsidies on general consumer goods.58/59MTN Integrated Business Report 31 December 2008