MobiNil strategy to focus on postpaid plans shows signs of success!

A newly released report from the Arab Advisors Group (www.arabadvisors.com) investigates MobiNil's subscribers base healthy churn from prepaid to post paid.

June 18, 2002 -

MobiNil subscribers 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.

A new report, entitled MobiNil shows a healthy churn: From prepaid to postpaid, was released to the Arab Advisors Group's (www.arabadvisors.com) Strategic Research Service subscribers on June 17, 2002. The report provides detailed analysis of the increase in postpaid subscribers during the first quarter of 2002.

"A close examination of figures reveals that while MobiNil's subscribers base has increased by only 3.34% during the first quarter of 2002, (amounting to 2.102 million compared to 2,034 million) postpaid subscribers increased by 22.7% during the same period (amounting to 399,380 compared to 325,440)." Shahin Shahin, Arab Advisors analyst, 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 subscribers." He 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," Mr. 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% on a revenues increase of 4.64%." Mr. Shahin concluded.

The Arab Advisors Group has been closely examining and researching the Egyptian communications market as part of its ongoing research and analysis of Arab Communications and Internet markets. To date, the Arab Advisors Group team of analysts has authored close to 100 reports on Arab communications markets in addition to completing many custom research and consulting projects for regional and global clients.