Growth in prepaid connections boosted MTN South Africa’s subscriber base by 2% for the quarter ended September 30 2015, writes GARETH VAN ZYL.
This is according to the group’s latest market update released on Thursday.
“MTN South Africa continued to gain momentum, increasing its subscriber base by 2% to 29.1 million for the quarter,” said the company in a statement to shareholders.
“This was mainly as a result of a 3.1% increase in the prepaid subscriber base, supported by the continued success of attractive below-the-line campaigns,” said MTN.
The company further added that billable minutes on its network increased by 41.4% year on year during the quarter.
But while MTN’s prepaid subscriber base spurred on growth, the company’s postpaid segment declined 2.6% to 5.2 million.
This was owing to approximately 90 000 disconnections of low-cost router SIM cards with Altech Autopage subscribers and the low availability of handsets, said MTN.
In MTN’s interim results statement released in August, the company explained that a Communication Workers Union (CWU) strike impacted on its handset supply chain.
And after the strike ended in July, MTN indicated that it is still shaking off its handset problems.
“While supply chain issues have been largely resolved, the operation continued to experience limited availability of handsets during the quarter as a result of delayed deliveries,” said the company on Thursday.
Other results pertaining to MTN’s SA market indicated that data revenue increased 40% and contributes 31.5% to total revenue, the company added 811 LTE sites during the quarter and its average revenue per user (ARPU) increased 8.8% for the period.
Nigeria drags down group
Meanwhile, the MTN Group recorded slower subscriber growth in its Africa and Middle East operation as Nigeria dragged down its performance.
Subscriber growth in the region topped just 0.9% quarter-on-quarter to hit 233 million users in MTN’s 22 markets.
MTN’s biggest market, Nigeria, experienced negative subscriber growth of 0.5% quarter-on-quarter from 62.8 million to 62.5 million.
The operator has blamed Nigerian authorities’ disconnection of 5.1 million subscribers for regulatory reasons as a key factor for the fall.
Personal computing devices sales still decline in MEA
The Middle East and Africa (MEA) personal computing devices (PCD) market, which is made up of desktops, notebooks, workstations, and tablets, suffered a decline of -7.3% year on year in Q2 2017, according to the latest insights from International Data Corporation (IDC).
The global technology research and consulting firm’s Quarterly PCD Tracker for Q2 2017 shows that PCD shipments fell to around 6 million units for the quarter.
“As forecast, the market followed a similar pattern to recent quarters, with the downturn primarily stemming from a decline in shipments of slate tablets and desktops,” says Fouad Charakla, IDC’s senior research manager for client devices in the Middle East, Turkey, and Africa. “This was the result of desktop users increasingly switching to mobile devices such as notebooks or even refurbished notebooks, while users of slate tablets shifted to smartphones. These trends translated into year-on-year declines of -21.9% for desktops and -15.7% for slate tablets in Q2 2017, while shipments of notebooks and detachable tablets increased 11.0% and 63.3%, respectively over the same period.”
“Market sentiment in the region remained low overall, although an aggressive push from some slate tablet vendors meant the market declined much slower than expected,” continues Charakla. “At the same time, heightened competition has also made it harder for certain players to sustain their slate tablet businesses and generate profits, causing them to lose interest in the slate tablet market altogether. Despite this, slate tablets are still the most popular computing device among home users in the region.”
Looking at the region’s key markets, IDC’s research shows that when compared to Q2 2016 overall PCD shipments were down -11.4% in the UAE, -8.9% in Turkey, and -6.7% in the ‘Rest of Middle East’ sub-region (comprising Iran, Iraq, Syria, Yemen, Palestine, and Afghanistan). South Africa and Saudi Arabia bucked this trend, recording year-on-year increases of 3.5% and 9.6%, respectively.
A massive education delivery in Pakistan acted as a key driver for notebook shipments in the region overall. Similarly, the education sector was the biggest driver of detachable tablet shipments, triggered by a huge delivery in Kenya, as well as two other deliveries in Pakistan and Turkey, which enabled this category to achieve the fastest growth of all the PCD categories.
“While a component shortage prevented market players from reducing their prices too much, the average price of consumer notebooks experienced a considerable year-on-year decline in Q2 2017,” says Charakla. “This played a key role in driving demand from the consumer segment, and was reflected in the growing popularity of lower-priced notebook models.”
Looking at the PC market’s vendor rankings, each of the top five vendors maintained their respective positions compared to the previous quarter, with the top four all gaining share.
Middle East & Africa PC Market Vendor Shares – Q2 2016 vs. Q2 2017
|Brand||Q2 2016||Q2 2017|
Although Samsung continued to lead the tablet market, the vendor rankings in the space saw quite a few changes, with Huawei catapulting itself to second place. Lenovo also climbed up a position compared to the previous quarter, causing Apple to drop to fourth place.
Middle East & Africa Tablet Market Vendor Shares – Q2 2016 vs. Q2 2017
|Brand||Q2 2016||Q2 2017|
“Looking to the future, the MEA PCD market is expected to decline at a faster rate than previously forecast for 2017 as a whole,” says Charakla. “Technological shifts are playing a pivotal role in deciding the future of this market, with demand for certain products shifting to other PCD products and beyond (i.e., smartphones). Accordingly, shipments of slate tablets are expected to continue declining over the coming years as demand is cannibalized by smartphones. Meanwhile, the ongoing shift to mobile computing will see growth in the desktop market remain close to flat throughout IDC’s forecast period ending 2021. Notebook shipments will experience very slow growth beyond 2018, while detachable tablets will remain the fastest growing PCD category, eating away share from other computing devices.”
Gazer cyber-spies exposed
ESET has released new research into the activities of the Turla cyberespionage group, and specifically a previously undocumented backdoor that has been used to spy on consulates and embassies worldwide.
ESET’s research team are the first in the world to document the advanced backdoor malware, which they have named “Gazer”, despite evidence that it has been actively deployed in targeted attacks against governments and diplomats since at least 2016.
Gazer’s success can be explained by the advanced methods it uses to spy on its intended targets, and its ability to remain persistent on infected devices, embedding itself out of sight on victim’s computers in an attempt to steal information for a long period of time.
ESET researchers have discovered that Gazer has managed to infect a number of computers around the world, with the most victims being located in Europe. Curiously, ESET’s examination of a variety of different espionage campaigns which used Gazer has identified that the main target appears to have been Southeastern Europe as well as countries in the former Soviet Union Republic.
The attacks show all the hallmarks of past campaigns launched by the Turla hacking group, namely:
- Targeted organisations are embassies and ministries;
- Spearphishing delivers a first-stage backdoor such as Skipper;
- A second stealthier backdoor (Gazer in this instance, but past examples have included Carbon and Kazuar) is put in place;
- The second-stage backdoor receives encrypted instructions from the gang via C&C servers, using compromised, kegitimate websites as a proxy.
Another notable similarity between Gazer and past creations of the Turla cyberespionage group become obvious when the malware is analysed. Gazer makes extra efforts to evade detection by changing strings within its code, randomizing markers, and wiping files securely.
In the most recent example of the Gazer backdoor malware found by ESET’s research team, clear evidence was seen that someone had modified most of its strings, and inserted phrases related to video games throughout its code.
Don’t be fooled by the sense of humour that the Turla hacking group are showing here, falling foul of computer criminals is no laughing manner.
All organisations, whether governmental, diplomatic, law enforcement, or in traditional business, need to take today’s sophisticated threats serious and adopt a layered defence to reduce the chances of a security breach.