SENS Note - 28 October 2010

MTN records higher subscription numbers

MTN recorded 134 471 000 subscribers at 30 September 2010. This is a 4% increase for the quarter from 129 214 000 subscribers recorded at 30 June 2010. This is a satisfactory result despite aggressive competition and continued regulatory challenges in key markets. Most key markets continue to increase or maintain market share due to high quality networks, attractive value propositions and efficient distribution. The company also continues to drive group wide initiatives including mobile data value propositions and mobile money contributing to maintaining our market leadership. The South and East African region, which contributes 22% to the group's subscriber base, increased its subscribers by 4.9% to 30 081 000 for the quarter mainly driven by growth in South Africa. South Africa which contributes 59% to the region's subscribers increased its base by, 3.9% to 17 772 000 subscribers for the quarter ended 30 September 2010. This was driven by continued growth in the prepaid segment which added 616 000 subscribers. The success of the value proposition "MTN Zone Mahala" and sustained positive brand awareness contributed to the operations successful performance. MTN Uganda increased its base by 5% to 6,215,000 for the quarter as competition continued to intensify. The West and Central African region contributes 46% to the group's subscribers and increased its subscribers by 3.4% to 61 380 000. Nigeria, which contributes 60% to the region's subscribers, recorded a 5.1% increase in its subscriber base to 36 841 000. Superior network quality and a success of the distribution framework continue to be the main strengths of the operation. As anticipated, Ghana subscriber numbers declined from 8 723 000 at the end of June 2010 to 8 459 000 at 30 September 2010 following the implementation of SIM registration on 1 July 2010. The impact of the new requirements initially lowered gross connections resulting in net negative subscriber growth in July and August which started to normalize in September2010. Cameroon and Cote d'Ivoire increased their subscriber bases by 4% and 3.1% to 4,680,000 and 4 996 000, respectively as competitive and regulatory challenges persist. The Middle East and North African region contributes 32% the group subscribers and increased its subscribers by 4.1% to 43 011 000. The growth within the region was largely due to the Iranian operation, which contributes 66% to the region's subscribers. MTN Irancell increased its subscribers by 5.6% to 28 486 000 due to attractive value propositions within the Ramadan period. Syria increased its subscribers by 6.8% to 4 721 000 due to increased brand awareness. Average revenue per a user ("ARPU") remained relatively stable in local currency when compared to June 2010. MTN South Africa's blended ARPU remained stable at R152 compared to 30 June 2010. Prepaid ARPU continued to show an upward trend although this was offset by the continued decline in postpaid ARPU. Nigeria and Ghana's ARPU remained relatively stable in both USD and local currency. Notwithstanding high growth rates and seasonal trends, Iran's ARPU continued to remain relatively stable at USD8.00 as aggressive network rollout benefits are felt.

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