Scale of retrenchments exaggerated – MTN

2014-10-23 16:26

Less than half of MTN’s 850 senior managers are being consulted in the mobile telecommunications company’s retrenchment process, according to MTN SA’s chief executive, Ahmad Farouk.

In a conference call with journalists today, Farouk said the 847 number quoted by unions was wrong and that “the entire number [that will be retrenched] does not exceed even half of that”.

Farouk said the retrenchment process would be closing at the end of November.

“We are justifying every little thing that we do, and we are changing the structure at MTN and maximising it. We are changing the way we do things,” said Farouk.

MTN released its third-quarter subscriber numbers and has won about 1.4 million customers in the local market.

This is a turnaround from the 850 000 customers it lost in the first quarter.

The 1.4-million customers were responding to competitive promotions over the last quarter, said Larry Annetts, the chief marketing officer of MTN SA.

“We are seeing high-value and low-value customers, and because our data and 3G network have improved [in terms of pricing] we are seeing a number of high-value users on board,” said Annetts.

When it comes to over-the-top services, which has become where the real competition is for networks, MTN has been looking at video-on-demand services.

Earlier this year it announced a partnership with music streaming service Simfy Africa and Annets said it had signed a partnership with Discovery Digital, which is a United States-based multichannel internet television company.

Data subscribers increased to 16.1 million and data usage grew by 55.9% on the MTN network.

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