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SA Telcos Rue Shrinking Revenue, Eye Enterprise Market Elsewhere

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Yunus Carrim, Communications minister, South Africa
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Operators in South Africa telecoms market are seeking opportunities in enterprise market for long-term growth after recent trading result saw revenue tumbling to record lows.

Business Monitor, the leading, independent provider of proprietary data, analysis, ratings, rankings and forecasts covering 195 countries and 24 industry sectors captured the decline in its just released findings.

The report “South Africa Telecoms Report” said that Vodacom reported a 1% decline in Q213 revenue compared to the previous quarter, while MTN reported a 1.4% drop in revenue in H113 compared to H212.

According to Business Monitor, both operators attributed the weak results to price competition and the interconnection rate cuts in March 2013.

Business Monitor believe this trend is unsustainable amid rising operating costs.

“They therefore expect operators to aggressively develop new revenue streams that will be less reliant on the consumer market in view of the risk of further ARPU erosion from the proposed telecoms pricing policy.

Vodacom and MTN are already pursuing a service diversification strategy with investment in non-voice solutions such as M2M and cloud computing. We expect other operators in the market to seek similar opportunities in the enterprise market to sustain long-term growth” Business Monitor reported.

According to Business Monitor, South Africa dropped two places to third position in this quarter’s update to Business Monitor’s Risk/Reward Ratings for Sub-Saharan Africa, with an aggregate score of 53.3, compared to 55.7 in the previous quarter. South Africa’s Industry Rewards rating dropped due to falling ARPUs, which Business Monitor believes are related to the regulator’s imposition of asymmetrical MTR cuts.

That said, South Africa remains the region’s largest economy and operators boast a healthier subscriber mix than much of the rest of the region, keeping its scores above the regional average.

However, its more mature mobile market means that growth prospects are slower than many of its neighbours and Business Monitor expect operators to diversify their revenue streams in order to sustain revenue growth.

Vodacom is inching closer to acquiring alternative fixed-line operator Neotel.

In September 2013, Bloomberg reported that Vodacom has entered into exclusive talks with Tataommunications, which owns a majority stake in Neotel, to acquire the fixed-line operator in a deal valued at around S$502million.

Business Monitor believes the takeover of Neotel, if completed, would open new growth opportunities for Vodacom, particularly in the corporate segment, and create new competition dynamics that could challenge Telkom’s dominance of the fixed-line sector over the long-term.

The South African government plans to introduce a transparent pricing policy in the telecoms sector as part of its ongoing programme to reduce the cost of communications.

According to Yunus Carrim, Communications minister, the policy is expected to be finalised by end-2013.

Although details of the exact tools that may be used to reduce costs have not been disclosed, Business Monitor notes the end result of the policy poses downside risks to operators’ revenues from traditional telecoms services.

Meanwhile, in October 2013 the Independent Communications Authority of South Africa (ICASA) drafted regulations to impose cost-orientated pricing on mobile and fixed termination rates, following a review on industry conditions.

According to the proposal, ICASA suggested a reduction in the current mobile termination rate of S$0.04 a minute to $0.02 in March 2014, while further reducing the termination rates to $0.015 and $0.01 in March 2015 and March 2016, respectively.
 
In the fixed-line market, the regulator proposed a rate of $0.019 for cross-net calls and $0.012 for on-net calls between 2014 and 2016, keeping asymmetric rates unchanged.


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GSMA Urges Import Duties Exemption for Smartphones

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Global System for Mobile Communications Association (GSMA) has urged African governments to recognise telecommunications as a core economic pillar and implement specific tax reforms that could dramatically accelerate digital inclusion across the continent.

GSMA Urges Import Duties Exemption for Smartphones

Mr. Daddy Mukadi, chair of GSMA Africa’s Policy Group, proposed a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between $40 and $150 to help bridge the usage gap.

He also called for the removal of entry duties on telecommunications equipment for at least three years to support the expansion of network coverage.

“These measures would help deliver inclusive and sustainable digital technology for economic and social progress. They would also support faster connectivity, improved access and the ability to connect more people, businesses and communities to the digital economy,” he said.

Mukadi who is also the chief regulatory officer of Airtel Africa, spoke at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC, an event convened to support the development of a strategic roadmap for the country’s digital and telecommunications sector and attended President Félix Tshisekedi.

He urged government and industry stakeholders to rethink the role of telecommunications in national development, arguing that it should be framed not as a sector specific concern, but as a continent-wide imperative.

“The telecoms sector can no longer be considered merely as a support sector. It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth,” Mukadi said.

His remarks come at a critical moment for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed $220 billion to the continent’s economy in 2024.

This is equivalent to 7.7per cent of GDP and is projected to reach $270 billion by 2030. Yet despite mobile networks now covering 95per cent of Africa’s population, nearly 75per cent of people across the continent remain offline.

The GSMA identifies this gap as Africa’s greatest connectivity challenge, driven above all by the unaffordability of devices.

Mukadi therefore called for strategic adjustments to public policy, as well as legal and regulatory frameworks, to support wider access to digital services. He said the telecommunications sector should be treated as a foundational pillar of economic development, with stakeholders working together to accelerate investment, expand coverage and close the usage gap across the continent.

The Chief Regulatory Officer of Airtel Africa also highlighted key barriers to digital inclusion, including the affordability of smartphones and the impact of import duties on telecommunications infrastructure.

He added that government and the private sector must work closely to create a regulatory environment that encourages innovation, protects consumer interests and supports long-term investment.


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Court Blocks Telcos from Cutting Nairtime’s Credit Services

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Federal High Court in Abuja has issued an interim injunction restraining MTN Nigeria and Airtel Networks from suspending or interfering with Nairtime Nigeria’s access to critical telecommunications platforms including short codes, SMS, USSD, and billing services, following a directive by the Federal Competition and Consumer Protection Commission (FCCPC) that left Nigerians without a safety net.

Court Blocks Telcos from Cutting Nairtime’s Credit Services

The order, granted on April 24, 2026 in Suit No: FHC/ABJ/CS/779/2026, ensures that millions of consumers, particularly those without access to traditional banking, can continue to access airtime and data on credit, services increasingly vital for daily communication, work, education, and digital participation.

Nairtime, part of the Optasia Group, is a leading provider of airtime and data credit services in Africa and the Middle East, facilitating micro-lending for mobile users.

According to Nairtime, the court’s intervention provides policy certainty and reinforces the legitimacy of its operations, which are conducted under a valid Value-Added Service licence issued by the Nigerian Communications Commission (NCC).

The company noted that the suspension linked to the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 risked disrupting services relied upon daily by ordinary Nigerians.

Ms Uchenna Agbo, chief commercial officer of Optasia and chief executive officer of Nairtime Nigeria Limited, said: “This decision is ultimately about protecting underserved Nigerian consumers.

It ensures that millions of people, many of whom are underserved by traditional financial systems, retain uninterrupted access to essential digital services. Over time, using these services responsibly can help them prove reliability and improve their chances of accessing bigger financial opportunities in the future.

“Our platform enables responsible, data-driven lending that keeps people connected when they need it most and we look forward to working with our partners to restore services in a manner that resumes full service value to the Nigerian consumers without further delay.”

Nairtime reaffirmed its commitment to consumer and data protection through stringent governance frameworks and ethical use of artificial intelligence, and emphasised that it shares the broader consumer protection objectives of the Federal Government while remaining open to constructive engagement with regulators and industry partners.

Agbo added: “We have built a system that supports inclusion at scale, while maintaining strong risk controls for industry stability and economic impact. This ruling allows us to continue delivering safe, reliable services that Nigerians depend on every day.

“We remain focused on ensuring that the Nigerian consumer stays at the centre of innovation and will continue working with regulators and our partners, including MTN and Airtel, to promote a fair, transparent, and inclusive digital ecosystem that benefits Nigeria and all Nigerians.”

Optasia, which listed on the Johannesburg Stock Exchange in late 2025 and was founded in Nigeria 14 years ago, provides the infrastructure layer connecting mobile network operators and banks to millions of underserved customers.

Through global partnerships with 50 distribution partners and 17 financial institutions, including some of Africa’s largest MNOs and tier-one banks, the platform uses proprietary AI that processes credit decisions in under one second, using alternative data to assess risk for customers who have never held a formal credit product.

Beyond telcos, the company is also developing new propositions including SME and merchant finance, longer-term and higher-value credit, telco BNPL and revolving credit lines, and embedding its platform across adjacent ecosystems and verticals.

 


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Truecaller Tags Nigeria as Africa’s Spam Call Capital

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Nigeria has been ranked the most spammed country in Africa, according to a new report by Truecaller has shown. The report showed that more than half of all unknown calls received by Nigerians in 2025 were identified as spam or fraudulent.

About 51 per cent of unknown calls were flagged as spam, placing Nigeria eighth in the world and ahead of African countries like South Africa, Kenya, Ghana and Ethiopia.

According to the report, most spam calls in Nigeria are linked to telecom companies and network-related promotions. Telecom-related calls made up 35 per cent of spam calls, while sales and telemarketing accounted for 10 per cent. Scam calls represented six per cent.

Truecaller said many Nigerians now struggle to know whether an unknown caller is a real network provider, a marketer, or a fraudster pretending to be from a trusted company.

The report also noted that Brazil faces a similar problem, with telecom-related calls dominating spam activities.

Globally, Indonesia ranked as the most spammed country in the world, with 79 per cent of unknown calls marked as spam. Chile came second with 70 per cent, while Vietnam, Brazil and India completed the top five.

The company added that the Middle East and Africa region passed 100 million monthly active users in late 2025, making Africa one of its fastest-growing markets.

Chief Executive Officer of Truecaller, Rishit Jhunjhunwala, said fraud and impersonation calls have become a serious global concern.

He said the company plans to focus more on stopping fraudulent calls before they reach users in 2026.

Truecaller also announced that it surpassed 500 million monthly active users worldwide as of March 31, 2026, with more than 150 million users outside India.


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