MobiNil’s subscriber-base has witnessed a churn from prepaid to post-paid as a result of the company’s strategy to focus on and promote post-paid sales. The Egypt-based GSM operator has been focusing on value growth rather than growth at any cost, asserts a newly released report from the Arab Advisors Group.
“A close examination of figures reveals that while MobiNil’s subscribers base has increased by only 3.34 percent during the first quarter of 2002, (amounting to 2.102 million compared to 2,034 million) postpaid subscribers increased by 22.7 percent during the same period (amounting to 399,380 compared to 325,440),” Arab Advisors Analyst Shahin Shahin wrote in the research note.
“The fact that the growth in post-paid subscribers exceeded the growth in total subscribers clearly shows the internal churn effect from prepaid to the more predictable, and potentially more loyal, postpaid subscribersm” Shahin added.
“MobiNil efforts to promote its post-paid plans succeeded in attracting new post-paid subscribers and encouraging some prepaid subscribers to shift to post-paid,” Shahin noted. “This churn from prepaid to post-paid has possibly contributed to the improvement in MobiNil’s results, where net income increased by 14.53 percent on a revenues increase of 4.64 percent,” Shahin concluded. — (menareport.com)
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